Business Situation in German Retail Deteriorates Slightly
The business situation among German retailers has deteriorated somewhat. The indicator fell from -7.2* points in August to -9.8 points in September. Expectations for the coming months, however, improved a little. “The recent noticeable increases in incomes among many consumers should further strengthen purchasing power, and retailers stand to benefit from this, too,” says ifo expert Patrick Höppner.
Retailers of computers and software as well as motor vehicle dealerships assess their current situation as relatively good. “On the other hand, many other retailers of personal and household goods, DIY stores, and furniture and furnishings stores recently complained that customers are being cautious,” Höppner says. Accordingly, they assess their business situation as relatively poor. In the second quarter, 81.9% of furniture and furnishings stores observed that customer frequency was too low (58.3% of DIY stores). Toy retailers (15.9%) and food and beverage retailers (18.1%) were the least affected by a lack of customers. Overall, 37.8% of retailers complained that stores were too empty.
*Seasonally adjusted
