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Declining retail sales in Germany: Customers are holding back due to high prices.
Sales in German retail continued to fall in September. According to the Federal Statistical Office, sales adjusted for price increases were 0.8 percent lower than in the previous month and, adjusted for prices, even 4.3 percent lower than in the same month last year. This reflects customers' reluctance to consume due to above-average inflation. Non-food items such as textiles, books and furniture are particularly affected by this decline. Here, real sales were 3.7 percent below August and 7.1 percent below the same month last year. In the food retail sector, however, price-adjusted sales only fell by 0.5 percent and, including price increases, there was a nominal sales increase of 6.0 percent. Since…
Declining retail sales in Germany: Customers are holding back due to high prices.
Sales in German retail continued to fall in September. According to the Federal Statistical Office, sales adjusted for price increases were 0.8 percent lower than in the previous month and, adjusted for prices, even 4.3 percent lower than in the same month last year. This reflects customers' reluctance to consume due to above-average inflation. Non-food items such as textiles, books and furniture are particularly affected by this decline. Here, real sales were 3.7 percent below August and 7.1 percent below the same month last year. In the food retail sector, however, price-adjusted sales only fell by 0.5 percent and, including price increases, there was a nominal sales increase of 6.0 percent. Since the low point in December 2022, the food trade has already recorded real growth of 4.7 percent.
This development can be attributed to both the general increase in price levels and consumer uncertainty. Higher prices for goods and services mean that people have less money to spend on other products, leading to a decline in sales in non-food industries. The increased price level may also lead to consumers becoming more selective in their purchases and spending less in non-essential areas.
The effects of this development on the market and the financial sector could be diverse. One possible effect is increased competition among retailers as they may attempt to attract customers through discounts and special offers. This could lead to further price wars and ultimately reduce companies' profit margins. In addition, consumer restraint could also lead to weaker demand for credit and financial services as consumers become more cautious and spend less money.
Overall, the current figures reflect cautious consumption due to concerns about rising prices and uncertainty. This could impact the economic recovery in the medium term and require retailers to make further adjustments to sales strategies and prices to compensate for the decline in sales.
Source: According to a report by www.weser-kurier.de
Read the source article at www.weser-kurier.de