Business Climate in German Retail Clouds Over

Car dealerships and furniture retailers reported a noticeably less favorable business situation. Sellers of clothing, furniture and furnishings, and DIY stores assessed the business situation as less favorable than the retail sector as a whole. By contrast, bicycle and food retailers, and retailers of consumer electronics reported an improvement in their business situation.

Fewer retailers expect price increases. They are more cautious in their plans to hire staff. “In a predominantly difficult business environment, retailers see fewer and fewer opportunities for price increases. Employment will also fall rather than rise in the short term,” says Höppner. In addition, many retailers find their inventories too high and are planning to scale back their orders for merchandise.

Source: ifo Institute
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