German Retail Sector Faces Sluggish Growth Amid Economic Uncertainty

The Handelsverband Deutschland revises 2024 retail growth forecast downward due to low consumer confidence and economic challenges.

The Handelsverband Deutschland (HDE) has reduced its 2024 retail growth forecast from 3.5% to 1.3%, citing economic instability and consumer caution.
Inflation-adjusted figures indicate no real growth, with the retail sector struggling to maintain momentum despite initial optimism.
Psychological factors, such as geopolitical tensions and economic uncertainties, are contributing to reduced consumer spending.
The upcoming Christmas season is expected to see stable but unimpressive sales, with an average planned spend of 297 euros per person on gifts.
Retailers in sectors like electronics and toys remain hopeful, while those in household goods and clothing anticipate further declines.