German Retailers See Slight Improvement in Holiday Sales Outlook

Despite challenging conditions, recent surveys show a modest uptick in retailer sentiment and consumer confidence as the holiday season begins.

The Ifo Institute reported a November business climate index of -22.1 for German retailers, an improvement of 3.1 points from the previous month and the second consecutive rise.
Retailers remain cautious but are slightly more optimistic about the 2024 holiday sales period, citing gradual improvements in sentiment.
The German Retail Association's (HDE) consumer confidence barometer also rose for the second month in a row, signaling a slow but steady recovery in consumer outlook.
Persistent consumer spending restraint continues to weigh on the broader retail landscape, with no immediate signs of a robust rebound in private consumption.
Price increases are anticipated in the coming months for food and furniture, while prices for cars and electronics are expected to remain stable, and bicycles may become cheaper.