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German trade makes huge sales growth

The German retail sector was able to increase its sales in 2020 more strongly than it has for 26 years. And that despite the corona crisis.

Despite the Corona crisis, German retailers increased their sales more sharply than ever last year. They were expected to take 5.3 percent more than in 2019, as the Federal Statistical Office estimated on Tuesday. This is the strongest increase since these statistics began in 1994 and the eleventh year in a row with an increase.

Adjusted for prices (real), there was also an increase of 4.1 percent. “These estimates take into account the lockdown in the second half of December and retail sales for the months of January to November 2020,” it said.

One of the beneficiaries of the Corona crisis was the online and mail order business, which many consumers turned to in view of the lockdowns. In the first eleven months he achieved a growth in sales of 24.0 percent. Many other retailers, on the other hand, were caught off guard by the Corona crisis: The trade in textiles, clothing, shoes and leather goods collapsed from January to November by 21.1 percent compared to the same period last year.

Lockdown weighs on retail sentiment

The important Christmas business got off to a good start for the industry. In November, which is characterized by days of action like Black Friday, sales rose in real terms by 1.9 percent compared to the previous month.

At the start of the new year, high numbers of corona infections and the lockdown are putting a strain on consumer sentiment, as the consumption barometer of the retail association HDE shows for the coming months.

“Consumers want to save more in the first few months after the turn of the year, their propensity to buy continues to decline,” it said. The HDE has repeatedly emphasized that there could be up to 50,000 bankruptcies among retailers because of the Corona crisis.

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