The political crises are spoiling the mood in the Christmas business – among retail customers and therefore also among retailers. The trade association expects less sales than in 2023 – but there are also satisfied sectors.
From the German retail perspective, the Christmas business was not particularly successful. The weeks before the festival suffered significantly “from the general weather situation,” said the President of the German Trade Association (HDE), Alexander von Preen.
“The mood is bad because of the wars in the world and the political uncertainties in Germany. This is affecting consumers.” People would have kept their money together. This meant that many retailers had little joy in the Christmas business.
Uncertain future due to new elections is depressing mood
According to HDE, the general conditions in the period before Christmas, which is so important for the industry, were more difficult than in the previous year. The traffic light off and the upcoming new election had a severe impact on shopping behavior.
“People don’t know what to expect in 2025 and are unsettled,” says von Preen. This prevented many from going into the city and enjoying the Christmas market.
Some industries happy with business
But there are sometimes big differences depending on the industry: The perfumery and cosmetics trade can look back on a good Christmas business. When asked, people wanted to treat themselves to something, especially in challenging times, the industry association explained. Fragrances in particular were popular gifts.
Jewelers, jewelry and watch shops also draw positive conclusions. Sales for jewelry are roughly at the level of previous years, and for watches they are slightly lower, says association managing director Joachim Dünkelmann. He is still satisfied because 2022 and 2023 were extremely successful.
Things also went relatively well for book, household goods and toy stores in the weeks before Christmas Eve. As always, children are probably the last to save, says Steffen Kahnt from the toy trade association.
Trade association expects lower sales than in 2023
Adjusted for inflation, the association expects overall sales in the Christmas business to be at the same level as last year at best. “I expect a small minus,” said von Preen. Originally, revenues of a good 121 billion euros were forecast for November and December – around the same as in 2023. Final figures are not yet available.
The year-end business does not end on Christmas Eve. Many customers use the days off after the holidays to shop. They spend money they received for Christmas and redeem vouchers. This has a positive side effect for retailers: consumers often don't leave it at that, but add something on top.
