German retailers optimistic about Christmas sales (updated)
08/11/2021 12:59
(Adds more details from news conference)
BERLIN, Nov 8 (Reuters) - German retailers are expecting
Christmas sales to rise 2% to 111.7 billion euros ($129.06
billion) despite inflation, delivery problems and a new wave of
coronavirus infections, the HDE industry association said on
Monday.
"High levels of saving and strong consumer sentiment point
to a forgiving end to the year after what was for many retailers
a difficult first six months due to lockdowns that threatened
their existence," said HDE chief executive Stefan Genth.
Online sales, which are expected to grow by 17.3%, to 23.1
billion euros ($26.69 billion), are expected to save Christmas.
The positive outlook comes even as German retailers are
staring down the same factors that are hampering other
industries: About three-quarters of the companies surveyed by
HDE for their forecast said supply bottlenecks could hurt their
sales.
Consumer electronics and household appliances may feel the
pinch of the global chip shortage, but Genth said that beyond
popular video game consoles, it will not lead to empty shelves.
Inflation, which at 4.5% is at its highest level in nearly
three decades, could also take a bite out of German customers'
gift-giving budget.
Genth added that how the pandemic plays out over the coming
months and the associated safety measures will affect whether
the HDE's forecast will be borne out.
Many retailers had to close their doors last winter as the
German government tried to stem the pandemic.
"No one can afford that anymore," said Genth, who added that
retail stores are not hotspots for the coronavirus' spread.
Germany's infection rate has risen to its highest level https://www.reuters.com/world/europe/german-coalition-parties-table-coronavirus-draft-law-monday-2021-11-07
since the start of the pandemic, public health figures showed
on Monday.
The seven-day incidence rate - the number of people per
100,000 to be infected over the last week - rose to 201.1.
($1 = 0.8655 euros)
(Reporting by Rene Wagner, Writing by Miranda Murray, editing
by Emma Thomasson and Louise Heavens)
((Miranda.Murray@thomsonreuters.com;))