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Retail in Hesse: sales forecast for Christmas dampened - financial analysis
According to a report from www.fr.de, Hesse's retailers expect a decline in sales in the Christmas business due to generally high inflation, which is severely affecting consumers' purchasing power. Despite price increases, the Hesse Retail Association is forecasting a slight nominal increase in sales in November and December and in 2023 as a whole compared to the same period last year. However, adjusted for price increases, a minus is expected in both cases. A nominal increase in sales of 1.5 percent to around 10.7 billion euros is expected for November and December. Adjusted for prices, however, there is a decrease of 5.5 percent. For the year as a whole, the association expects revenue of around 56.4 billion euros, which is nominally...
Retail in Hesse: sales forecast for Christmas dampened - financial analysis
According to a report from www.fr.de, Hesse's retailers expect a decline in sales in the Christmas business due to generally high inflation, which is severely affecting consumers' purchasing power.
Despite price increases, the Hesse Retail Association is forecasting a slight nominal increase in sales in November and December and in 2023 as a whole compared to the same period last year. However, adjusted for price increases, a minus is expected in both cases.
A nominal increase in sales of 1.5 percent to around 10.7 billion euros is expected for November and December. Adjusted for prices, however, there is a decrease of 5.5 percent. For the year as a whole, the association expects revenue of around 56.4 billion euros, which corresponds to a nominal increase of 3.0 percent. However, a real decline of four percent is also expected here due to the increase in prices.
Stubborn inflation has been weighing on consumers for months and is causing them to have less purchasing power. As a result, many people are limiting their consumer spending. Although the annual inflation rate in Germany recently fell to 3.8 percent, food prices also rose above average in October. In addition, households and businesses are struggling with higher energy costs.
This decline in retail sales due to inflation and declining consumer sentiment could impact the entire economic market. Lower purchasing power and falling retail sales could lead to a slowdown in economic growth. In addition, retail companies may be forced to lower their profit expectations and rethink their spending, which in turn could lead to a decline in investment.
Further developments also depend on the development of the inflation rate and the measures taken by the government and the European Central Bank to contain inflation. It remains to be seen how the economic impact of the current situation will affect the financial industry as a whole.
Read the source article at www.fr.de