Whether it’s food, bicycles or electronics – Germans have become more cautious when it comes to spending money. Local retailers are also feeling the effects.
The business climate in retail has deteriorated noticeably. The Ifo index for the industry fell from minus 19.5 points in June to minus 25.4 points in July. Retailers are not only assessing their current business situation much more cautiously, their expectations for the end of the year have also become even more gloomy. A significant revival in business in the current half of the year “is therefore less likely,” says Ifo expert Patrick Höppner. For the second quarter, 54 percent of retailers report insufficient demand. Sellers of bicycles, clothing, furniture and furnishings rate their business situation as particularly tense. Retailers of electrical engineering and electronic household appliances as well as drugstores report an unfavorable development of their business. The food trade and car dealers are also less satisfied. Overall, the retail sector is planning for a decrease in personnel requirements, says Höppner.
Source: Stern
