Retail: How did the Christmas business go in Germany?

Delicious cookies, Advent calendars, Christmas tree decorations and of course gifts: For many people in Germany, Christmas is the most wonderful time of the year. For retailers it is the most important. Some industries traditionally record their highest sales in November and December. An overview:

How did the Christmas business go this year?

Not particularly good. The President of the German Trade Association (HDE), Alexander von Preen, says: “Adjusted for inflation, sales will at best be at the same level as last year. I expect a small minus.” Many retail companies would not have enjoyed this year’s Christmas business.

Originally, revenue of around 121 billion euros was forecast for November and December – roughly the same as in 2023. Final figures are not yet available.

The weeks before the festival suffered “from the general weather situation,” as von Preen says. Because of the wars in the world and the political uncertainties in Germany, the mood was bad. “That hits consumers hard.” The result: Because many people didn’t feel like shopping, they kept their money together.

What bothered the traders?

The trade association is angry about federal politics and the unrest in Berlin. “People had to learn that politics was not able to solve problems for them,” says the HDE President. Due to the traffic lights being turned off and the upcoming new election, the general conditions for the Christmas business were even more difficult than in 2023.

According to Preen, this significantly affected shopping behavior. “People don’t know what to expect in 2025 and are unsettled.” This prevented many from going into the city, enjoying the Christmas market and buying gifts.

In fact, the whole year was difficult for retailers in Germany, with many companies struggling with the moderate purchasing mood. In November, the HDE therefore revised its annual forecast significantly downwards.

How willing were the customers to spend?

According to a representative Yougov survey, one in two people in Germany paid the same amount of money for Christmas presents as in 2023. One in five spent less, 13 percent more. Everyone else either didn’t buy any gifts or didn’t provide any information.

In which sectors did things better?

Anyone who asks around will find out that there are big differences, sometimes even within the individual industries. The perfumery and cosmetics trade can look back on a good Christmas business. When asked, people wanted to treat themselves to something, especially in challenging times, the industry association explained. Fragrances in particular were popular gifts.

Jewelers, jewelry and watch shops also draw positive conclusions. Sales for jewelry are roughly at the level of previous years, and for watches they are slightly lower, says association managing director Joachim Dünkelmann. He is still satisfied because 2022 and 2023 were extremely successful.

Things also went relatively well for book, household goods and toy stores in the weeks before Christmas Eve. As always, children are probably the last to save, says Steffen Kahnt from the toy trade association.

How was it in the other sectors?

The conclusion of the textile and fashion stores is mixed. “Not everyone is happy with how the Christmas business is going,” says the industry association’s managing director, Axel Augustin. Although sales were at the previous year’s level, retailers were suffering from massive increases in costs, for example for personnel, energy and rent. After all: the low temperatures at the beginning of December boosted sales of winter goods.

Things were mixed when it came to sports and electronics. “Of course, sports retailers are also noticing a certain reluctance to buy, but sport seems to be pretty crisis-proof,” says the President of the Association of German Sports Retailers, Stefan Herzog.

The fact that customers are reluctant to shop was particularly evident for long-lasting and slightly more expensive goods such as ski equipment. “You notice that customers are extending their usage times and postponing purchases,” says von Preen, who is the Germany boss of the sports retailer group Intersport. The situation is similar with electronic products such as smartphones, computers or kitchen appliances.

An HDE survey of more than 300 retailers before the fourth Sunday in Advent is clear: only one in five companies is satisfied with the Christmas business, most are disappointed.

What makes retailers forgiving?

The year-end business does not end on Christmas Eve. Many customers use the days off after the holidays to shop. They spend money that they received as a Christmas present and redeem vouchers. This has a positive side effect for retailers: consumers often don’t leave it at that, but add something on top.