Retail: German retail trade with sales increase in the first half-year
Retail sales rose despite weak consumer sentiment - mainly due to higher prices. In real terms, there is only a small increase, and the industry remains skeptical about the future.
In the first half of the year, German retailers saw a sales increase primarily driven by price hikes. Retail revenues climbed 2.2 percent year-on-year from January to June, according to the Federal Statistical Office, correcting some data from Monday. After adjusting for inflation (real), the rise was just 0.7 percent. Stefan Genth, CEO of the German Trade Association (HDE), noted that the retail environment is far from ideal.
The consumer mood has long been hovering around the level seen during the second coronavirus lockdown, according to the industry body. "This is not enough to give the sector a boost," Genth emphasized. Neither the international situation with conflicts in the Middle East and Ukraine nor domestic policies offered much hope for a better mood in the short term.
The HDE forecasts a two percent sales growth for the entire year of 2026, mainly fueled by e-commerce. Without price increases, only a real plus of 0.5 percent is expected. The HDE urges policymakers to make decisive reforms to relieve businesses and consumers from wage overheads, energy prices, and bureaucracy. Only when people feel positive changes in their daily lives will the spending mood rise.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
