Retail sales are an important economic indicator that reflects the state of the economy in any country. In Germany, these sales are a key indicator of the strength of consumer spending and market trends. Monthly data on retail sales can be used to understand how different economic factors affect domestic demand.
German Retail Sales Performance in the Last Month
German retail sales in the last month recorded significant changes on a monthly basis. According to data released by the Federal Statistical Office, the results showed fluctuations in monthly sales due to several economic factors, such as changes in the prices of goods and services, consumer expectations, as well as the effects of monetary policies taken by the European Central Bank. Despite the challenges, sales showed a slight improvement compared to the previous month, recording an increase of 0.4%, which reflects a limited recovery in consumer spending.
Factors Affecting Retail Sales
Retail sales in Germany depend on a number of factors that can significantly increase or decrease them. One of the most prominent factors is changes in interest rates set by the European Central Bank. When the European Central Bank raises interest rates, consumer demand declines because the cost of credit rises.
In addition, changes in consumer confidence levels affect retail sales performance. If confidence in the economy is weak, consumers may tend to cut back on their purchases and postpone major purchase decisions. Conversely, if confidence is high, retail sales can see an increase in volume.
Food sector: challenges and opportunities
Despite the challenges facing retail sales in Germany, the food sector remains a relatively stable sector. Last month, food sales increased slightly by 0.5% compared to the previous month. This increase is due to continued demand for essential goods.
Retail sales in October 2024 by 1.5% in real terms compared to the previous month
Retail sales, October 2024 (provisional, calendar and seasonally adjusted)
-1.5% on the previous month (real)
-1.1% on the previous month (nominal)
+1.0% on the same month last year (real)
+1.9% on the same month last year (nominal)
WIESBADEN – According to preliminary results from the Federal Statistical Office (Destatis), retail companies in Germany recorded 1.5% lower sales in real terms (price-adjusted) and 1.1% lower sales in nominal terms (not price-adjusted) in October 2024 compared to September 2024.
In October 2024, sales in the food retail sector increased by 0.1% in real terms and by 0.9% in nominal terms, calendar and seasonally adjusted, compared to the previous month. Compared to October 2023, sales increased by 0.9% in real terms and by 3.5% in nominal terms.
Real retail sales and seasonally adjusted non-food retail sales decreased by 2.2% month-on-month in October 2024, but increased by 1.0% year-on-year in October 2023. In online commerce and mail order, real sales in October 2024 decreased by 2.4% month-on-month and were thus 8.0% higher than sales in the same month of the previous year, October 2023.
The different comparison periods should be taken into account in all reports on economic indicators. The focus of economic monitoring is on comparing calendar and seasonally adjusted values with the previous month/quarter. Short-term economic development can be seen from this. The calendar-adjusted comparison with the previous year is a long-term level comparison and is independent of seasonal fluctuations and calendar effects. The Corona crisis and the war in Ukraine may cause very different results compared to the previous month, quarter, and year.
August 2024 – 1.6% in real terms compared to the previous month
Retail sales, August 2024 (provisional, calendar and seasonally adjusted)
+1.6% on the previous month (real)
+1.6% on the previous month (nominal)
+2.1% on the same month of the previous year (real)
+3.1% on the same month of the previous year (nominal)
Wiesbaden – According to preliminary results from the Federal Statistical Office (Destatis), retail companies in Germany achieved a sales increase of 1.6% in August 2024 compared to July 2024, both in real terms (adjusted by price) and in nominal terms (not adjusted by price) after calendar and season adjustment compared to the same month of the previous year. In August 2023, retail sales increased by 2.1% in real terms and 3.1% in nominal terms.
Previously, retail sales in May and June 2024 decreased compared to the previous month (May 2024: real: -1.4%, nominal: -1.1%; June 2024: real: -1.1%, nominal: -0.8%). Then, sales in July 2024 increased by 1.5% in real terms and by 1.7% in nominal terms compared to the previous month. In August 2024, calendar and seasonal sales in food retail increased by 1.9% in real terms and by 2.2% in nominal terms compared to the previous month. Compared to August 2023, sales increased by 2.4% in real terms and by 4.4% in nominal terms.
Real and seasonally adjusted sales in non-food retail trade increased by 1.1% in August 2024 compared to the previous month and by 1.2% compared to August 2023 in the same month of the previous year August 2024 increased by 8.9% compared to the previous month and was thus 10.8% higher than sales in the same month of the previous year August 2023. With the publication of the calendar and seasonally adjusted results for retail sales in August 2024, the Federal Statistical Office will resume its regular economic reports in retail and service sectors.
