A Year of Declining Sales Amidst Economic Challenges
(Wiesbaden, Germany) – The German retail industry faced significant setbacks in 2023, marking a notable downturn from the previous year’s performance. According to preliminary results released by the Federal Statistical Office (Destatis), the sector saw a real (price-adjusted) sales decrease of 3.3% in comparison to 2022. Despite these challenges, the nominal (unadjusted for price) sales figures indicated a slight increase of 2.3%.
Weaker Christmas Sales Impact Annual Performance
The year 2023 concluded with weaker Christmas business than the previous year, contributing to the overall downturn in sales. The final month of December witnessed a real sales drop of 1.6% from the previous month, and a 1.7% decrease compared to the same month in the previous year. However, nominal sales for December showed a marginal increase of 0.8% year-over-year.
Long-Term Trends and Pandemic Influence
The retail sector’s downturn in 2023 represents a shift from the trends observed during the pandemic years. In 2020, at the height of COVID-19, the German retail sector, bolstered by online and mail-order business, experienced a significant real sales growth of 4.8%. This upward trend continued into 2021 with a further increase of 0.6%. However, 2022 marked the beginning of a downward trajectory, culminating in a more pronounced decline in 2023.
Despite the decline in recent years, the real annual sales in 2023 are still 1.3% above the pre-pandemic level of 2019, indicating a degree of resilience in the sector.
Outlook for the German Retail Sector
The year 2023 stands as a challenging period for the German retail industry, with its performance falling short of the heights reached in the previous years, particularly the record year of 2021. The sector’s ability to adapt to the post-pandemic market conditions and navigate through economic uncertainties will be crucial in determining its future trajectory.
The detailed financial results and further insights into the sector’s performance are expected to be revealed in the full report scheduled for release later in the year.