Sluggish retail sales - 'Consumer preferences have shifted'
🤖Hey there! Let's dive into the latest retail news. March sales took a small dip, contrary to the expected decline, but don't worry folks, it's not all doom and gloom.
The Federal Statistical Office reported a slight decrease of 0.1% in sales from the previous month. When adjusted for inflation, sales dipped by 0.2%. Economists predicted a much heftier drop of 0.4%, so this was quite a pleasant surprise! Comparing it to March 2024, sales saw a respectable increase of 2.2%.
Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, had this to say, “Consumption joy looks different.” After two years of economic recession and a constant downpour of unsettling news, he noted that it’s not easy to embrace the future with optimism and indulge in consumer desires.
The food sector bucked the trend and saw an increase of 0.3% in real turnover. However, non-food items saw a decline of 0.6%. Online retail once again shone as a growth driver, with a 0.6% increase in internet and mail order sales. Stefan Genth, chief executive of the German Retail Federation (HDE), commented that “online trade remains the shining star.” The HDE anticipates a sales increase of 2% to 677 billion euros this year, with 0.5% real growth expected.
Despite the ongoing trade dispute and tough economic conditions, German consumers' mood has shown signs of improvement. The consumer climate for May surprisingly increased by 3.7 points to a slightly positive -20.6 points, according to a GfK and Nuremberg Institute for Market Decisions (NIM) survey of around 2,000 people. NIM consumer expert Rolf Bürkl suggested that this could be due to the public's relief over the quick formation of a government.
So there you have it! Despite a small hiccup in March sales, the retail industry seems to be showing some resilience. Stay tuned for more updates! 📈🚀
(Sources: Reuters, GfK, NIM)
- In contrast to economists' expectations, sales in the retail industry saw a respectable increase of 2.2% compared to March 2024.
- The retail sector in Nuremberg, specifically, may find encouragement in this positive trend as they navigate their business and finance affairs.
- Interestingly, while the overall retail sales decreased slightly by 0.1%, stationary items did not follow suit and managed to maintain their sales figures.
- In line with these developments, experts predict that online retail, which recorded a 0.6% increase in internet and mail order sales, will continue to be a significant boost for the retail industry in the future.
