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Germany Today

German news in English

Friday, January 31, 2025

German Retail Faces Holiday Slump

Published: 2024-12-24

The 2024 holiday season has been disappointing for German retailers, with sales failing to meet expectations.

The Ifo business climate index for retail dropped to -23.0 points in December, reflecting worsening conditions.

Political uncertainty, global conflicts, and inflation have dampened consumer confidence, leading many to spend cautiously.

While some sectors like cosmetics and books saw moderate success, overall sales are expected to be slightly below 2023 levels.

Retailers are now pinning hopes on post-Christmas shopping to recover some losses.

Experts warn that 2025 may bring further challenges, despite potential boosts from rising incomes.