Overview

• An IFH Köln survey finds about half of consumers feel strongly unsettled by the economic crisis and 42% have postponed planned expenses.
• Roughly half of German retailers reported deteriorating business in the first half of 2025, while only a quarter expect year-on-year sales gains.
• The Handelsverband Deutschland maintains its forecast of a 2% nominal sales increase for physical stores in 2025 and projects a 4% rise for online retail.
• Key food and drink prices have surged year-on-year, with chocolate up 28% and coffee 19.5%, fueling more price-sensitive buying habits.
• Consumer sentiment has edged up to its highest level in a year, but shoppers remain focused on essentials and low-price segments.