For many people in Germany, Christmas isthe most beautiful time of the year». However, for retail it is definitely the most important period of the year. Most industries record their best turnover in November and December, as consumers buy gifts for acquaintances and friends or give themselves the “something extra” they haven’t acquired during the year.

So how did business go this year? Not very well, argues the chairman of the retailers (HDE) Alexander von Preen. “If we factor in inflation, the holiday turnover will at best be similar to last year, but personally I think a slight decrease is more likely,” von Preen told the German News Agency (dpa). Specific figures for this year do not yet exist, however in 2023 the “Christmas turnover” fluctuated around 120 billion euros.

Concern about political developments

The “big picture” of political developments and economic distress has not been pleasant for consumers, not this year either. The carelessness that drove people en masse to the Christmas Markets and then to the malls is missing. “Many are affected and are not in the mood to shop,” estimates the president of retailers. “They don’t know what might happen to them in 2025 and they feel insecure, so they prefer to keep their money. Moreover, they realize that politicians are not able to solve their problems.”

But also the latest political developments with the collapse of the government in Berlin and the announcement of early elections for February have further burdened the climate, so the general conditions are probably worse than last year’s festive season, the HDE president estimates.

How much did the Germans spend this year?

According to a recent survey by Yougov, one in two Germans have spent this year on holiday gifts about the same amount as last year and one in five less. Only 13% of consumers want or are able to spend more.

The season went very well for specific products, such as perfumes and jewelry. “It seems that especially in difficult times, people want to enjoy something special” comments an industry representative. Turnover on watches was somewhat lower, but no one is complaining, as 2022 and 2023 were excellent years. Books, toys and home appliances have also fared relatively well, according to estimates so far.

Conversely, in clothing and footwear, many retailers were not happy. An industry spokesman says turnover is “about the same” as in 2023, but rent and energy costs, as well as wage costs, have risen significantly. Only the winter months showed a small increase, after the sharp drop in temperature at the beginning of December. In sporting goods, retailers are generally happy, with the exception of more expensive products such as ski equipment. “Here we see that many consumers postpone purchases and decide to finally keep for a longer period of time products that they had bought in the past,” says Alexander von Preen, who is also the head of the German branch of the Intersport group.

However, the season is not over yet. Even the less happy remain optimistic, because they know that a part of the “Christmas turnover” is made not before, but after the holidays. This is because some spend money or redeem shopping coupons they received as gifts during the holidays.

Edited by: Yiannis Papadimitriou