Strong june in the retail sector – sales up significantly

Strong June in the retail sector - sales up significantly

Strong business in the summer drove sales for germany’s retailers in the first half of the year. In june, retailers generated 5.3 percent more sales than a year ago, as reported by the german federal statistical office.

If price increases are excluded, sales grew by 3.0 percent in real terms. However, june 2018 had one more sales day than the same month last year. In the first half of the year, sales rose by 3.0 percent in nominal terms and by 1.4 percent in real terms.

The trade association HDE, however, steamed too high expectations. The general conditions are still good, especially the situation on the labor market. "However, the HDE consumer barometer in july clearly showed that the uncertainties in connection with the trade dispute between the eu and the u.S., as well as the disputes within the federal government, have unsettled consumers," argued chief executive stefan genth.

The association continues to expect nominal sales growth of two percent to 523 billion euros for the year as a whole. Adjusted for price increases, a plus of 0.5 percent is expected. Last year, sales grew by 4.1 percent in nominal terms and by 2.6 percent in price-adjusted terms.

According to gfk consumer researchers, the economic situation in germany is becoming increasingly worrying due to international trade conflicts – but their desire to buy is still unbroken. According to the latest consumer climate study by the nurnberg market research institute, people in germany continue to expect higher incomes and are prepared to spend money on more substantial purchases. According to economists, private consumption will remain an important economic pillar for europe’s gross national economy.

However, growth is distributed extremely unevenly. Above all, online retail and many large-scale retailers are benefiting from the buying mood. Smaller stores, on the other hand, are coming under increasing pressure, according to an HDE industry survey published in april. The majority of retailers with fewer than five employees are therefore expecting a drop in sales this year. "The gap between small and large retailers is widening," complained HDE chief executive genth.

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