Consumption: Retail expects a difficult year

Consumption: Retail expects a difficult year

Uncertainty will probably also determine the year 2023. The trade association expects sales to fall due to inflation and slack consumption. Nominally, however, it should look different.

In view of inflation and sluggish consumption, the retail sector in Germany expects business to be rather poor this year. Price-adjusted sales are expected to fall by three percent, the German Retail Association (HDE) predicted on Tuesday. Only because of inflation will sales increase nominally – including price increases – by two percent.

According to a survey by the association of 900 companies, almost half of the retail sector expects sales to be at or slightly above the previous year’s level, around a third slightly below the previous year, and around 18 percent expect a significant drop in sales.

“The retail trade will hold its own well in 2023 under still difficult conditions, but will lose some ground,” said HDE President Alexander von Preen. The number of retail businesses will continue to fall. The environment remains characterized by uncertainty. However, digitization still offers great opportunities. Contrary to the general trend, the HDE anticipates a nominal increase of eight percent in online trading compared to the previous year, which corresponds to price-adjusted growth of four percent.

Source: Stern

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