The German retail sector can look back on a difficult first half of the year.
(Photo: dpa)
Berlin German retailers have ended a difficult first half of the year with high inflation, the corona crisis and the Ukraine war with the sharpest drop in sales in 28 years. Adjusted for inflation (real), sales in June were 8.8 percent lower than a year earlier, the Federal Statistical Office announced on Monday. “This is the largest decline compared to the same month last year since the beginning of the time series in 1994,” it said.
In nominal terms – i.e. not price-adjusted – sales fell by only 0.8 percent. “The difference between the nominal and real results reflects the high price increases in retail, which are having a noticeable impact on consumer confidence,” the statisticians explained.
Economists predict tough times for retail to continue. “That wasn’t the last bad consumer news,” said the chief economist at Hauck Aufhäuser Lampe Privatbank AG, Alexander Krüger. “Because of the miserable consumer mood, the consumer star should continue to fall from now on. Consumers are struggling with serious real income losses.” The gas surcharge will also curtail consumer wishes this year. “The low point in consumption is yet to come,” Krüger therefore expects.
There was also a decline in sales compared to the previous month: Adjusted for inflation, revenue fell by 1.6 percent compared to May. That comes as a surprise: economists surveyed by the Reuters news agency had expected slight growth of 0.2 percent. Consumers spent 1.6 percent less on groceries.
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“The decline is probably mainly due to the increased food prices,” according to the statisticians. Trade in textiles, clothing, shoes and leather goods was unable to continue the positive trend of the year to date and was 5.4 percent lower in June than in the previous month.
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