“Price increases” and “out-of-stock” may affect Germany’s Christmas shopping season!

As the year draws to a close, many businesses and consumers around the world are looking forward to the Christmas sales peak season. However, the current supply chain congestion, high freight costs and inflation have affected many countries. The resulting market conditions will also affect consumer sentiment, which will in turn have an impact on sales in various countries.

According to foreign media reports, Germans ' purchasing sentiment declined significantly in September. According to the Federal Statistical Office, at the end of the summer quarter, retailer revenues fell nominally by 2.3% compared with August. If price increases are excluded, the actual decline is 2.5%. But economists had expected an increase of 0.6%.

In terms of sales categories, the decline was particularly significant in the textile, clothing, footwear and leather products business, with sales falling by nearly 10% . Even the Internet and mail-order business, which has been booming since the COVID-19 crisis, fell by 2.0%.

There are many reasons for the sharp drop in sales . The survey shows that global supply problems for important raw materials for industrial products have now affected the retail sector. Experts say that in addition to supply shortages, rising prices, especially rising oil and gas prices in the global context , may also cause consumers to buy less other products. In addition, the continued spread of the new crown epidemic has also made the German people very willing to save.

As the Christmas shopping season is approaching, retailers are also turning their attention to the Christmas period and hoping to stimulate consumers' purchasing sentiment.

According to the current consumption barometer of the German Retailers Association ( HDE), the German consumer purchasing sentiment index in November reversed the previous three consecutive months of decline and returned to the level of the previous year. The Retailers Association said: "Especially compared with last year, consumers' willingness to spend has increased." The reason is that income has increased slightly. But at the same time, the tendency to save has also increased.

According to the latest findings from Germany's GfK market research agency, although Germany's inflation rate has reached its highest level since 1993, consumers' purchasing sentiment in November was more optimistic.

Although German consumers' purchasing sentiment increased in November, due to many factors, German consumers are expected to be relatively conservative during this Christmas season.

German people's willingness to spend declines, Christmas shopping season may be affected