Rising prices and purchasing reluctance are overshadowing the Christmas business - financial experts warn of possible effects

Rising prices and purchasing reluctance are overshadowing the Christmas business - financial experts warn of possible effects

According to a report by www.br.de, retailers are facing challenges in the upcoming Christmas business. Rising prices due to inflation and consumers' continued reluctance to buy have led to a rather pessimistic forecast from the trade association. The negative impact of Black Friday on holiday shopping is also being debated, as consumers may not be in the mood to save and retailers expect little sales growth.

The forecasts from the Bavarian Trade Association mentioned in the article indicate that Christmas business is expected to decline by five percent this year. This reflects retail concerns about consumer reluctance to purchase due to high inflation and energy costs.

The examples given of customers who do not increase their spending despite increased prices illustrate the cautious behavior of consumers. This could lead to reduced demand for more expensive products and negatively impact retail sales.

The trade association's critical stance toward Black Friday and Cyber ​​Monday shows that these promotions may not deliver the expected sales increases as consumers hold onto their money. This could result in retailers lowering their sales expectations for these promotional days.

Given these factors, it is likely that consumers will increasingly turn to vouchers and cash as gifts rather than purchasing expensive products this year. This could lead to a decline in sales for certain product categories, while gift cards and cash become more important.