As the festive season approaches, the Retail Association of Saxony-Anhalt and Thuringia forecasts a stable Christmas business with a slight uptick in sales. Despite the global uncertainties, like the ongoing Ukraine conflict and economic instability, they remain cautiously optimistic. The German Retail Association (HDE) anticipates a national sales growth of 1.32 percent, with November and December being the peak months for retailers.
Consumers in Germany are expected to spend an average of 297 euros on Christmas gifts, contributing significantly to the annual turnover of various sectors, including toys, glassware, ceramics, and books. However, non-food retailers brace for a potential dip in sales, while sporting goods and electronics vendors predict an increase.
Inflation, the geopolitical situation, and broader economic concerns are expected to dampen consumer enthusiasm. The HDE’s forecast for 2024 suggests market stagnation, with a total revenue projection of 657.4 billion euros, considering a balanced outcome by year-end as a success.
Meanwhile, businesses in Saxony-Anhalt report fewer registrations compared to the previous year, yet the region shows a positive net balance in trade, maintenance, and other services. Retailers continue to urge the government for reduced bureaucracy, lower energy costs, and stricter regulations on harmful platform practices. As the holiday season looms, it remains a critical period for the retail sector, representing more than 20% of the annual sales, with consumer sentiment reaching its highest since April 2022. The industry watches closely as political and economic developments unfold, shaping the landscape for the coming year.
