German Shoes And Clothing Retail Market Is Severely Weak

According to the latest figures of the German Federal Bureau of Statistics, in September this year, the sales volume of the country's retail industry decreased by 2.9% compared with the previous month, and the total amount was the lowest in seven years.

In September last year, the retail sales of the country also increased by 2.9%. Although the industry's forecast for the same period this year is not ideal, the actual situation is 0.9% negative increase than expected

according to Germany According to the latest figures of the Federal Bureau of Statistics, in September this year, the sales volume of the country's retail industry decreased by 2.9% compared with the previous month, the lowest total in seven years.

In September last year, the retail sales of the country also increased by 2.9%. Although the industry's forecast for the same period of this year is not ideal, the actual situation is more serious than the expected negative growth of 0.9%.

The mild temperature in autumn this year affected the sales of winter clothing on the market. The market of textiles, clothing, shoes and leather goods was severely weak, showing a negative growth of 5.7%. However, the sales of drugs, supermarkets and department stores remained unchanged, with a 5.4% increase in turnover.

Labor force in the country market This year saw a boom, with bank credit interest rates falling, wages rising, and inflation maintaining a low level. These elements have become the new driving force for the prosperity of the consumer market. From January to August this year, the sales volume of the whole industry increased by 1.8% over the same period last year. At present, 4300 people are employed in Germany, the employment rate is the highest in the history of the Federal Republic of Germany, and the labor wage increase is higher than the price increase.

However, these elements did not bring about the continuous prosperity of the retail market. The crisis in Ukraine has brought consumers a sense of insecurity, which is considered to be an unsatisfactory sales performance in September reason Therefore, the industry has lowered the expectation of annual sales performance. After winter comes, especially when Christmas comes, there is expected to be a big stimulus. It is expected that the sales growth rate at the end of the year will reach 1.5%.

If the retail sales continue to decline in the third quarter of this year, it will directly affect the German economic growth this year. Some economic experts predict that there will be negative growth.

The European economy continues to be sluggish, and the unemployment rate in many EU countries remains high. At present, the average unemployment rate in the EU is 11.5%. The economic downturn also shows low inflation. Although the price of goods in the euro area increased by 0.4% in October, it is still far from the expected inflation rate of 2% of the European Central Bank.