Retailers Report Slow Start to Holiday Shopping Season

The holiday shopping season has yet to gain significant traction in many German city centers, according to recent findings from the German Retail Association (HDE). Despite the traditional surge in consumer activity expected before Christmas, a large proportion of retailers express dissatisfaction with current sales performance.

Based on results from an industry survey, approximately two-thirds of participating businesses indicated that the pace of holiday sales has not met their expectations so far. Many retailers in urban downtown areas report subdued customer turnout, with foot traffic and purchasing activity trailing behind previous years. While this trend is most apparent in the heart of major cities, retailers in suburban locations and those specializing in certain product categories, such as toys and consumer electronics, have experienced slightly more robust demand. However, these positive exceptions have not been sufficient to offset the overall sluggishness in the sector.

Economic uncertainty continues to shape consumer behavior. According to HDE representatives, shoppers are demonstrating heightened caution with their spending due to factors such as ongoing global economic volatility and concerns over personal finances. Many consumers remain committed to exchanging gifts with loved ones during the festive period, but are more carefully considering their purchases and budgets.

Another significant influence on traditional retail is the intensifying competition from online marketplaces, particularly those based overseas. E-commerce platforms, including well-known companies from Asia, have attracted a growing share of holiday shoppers by offering wide product selections and competitive pricing. This shift has further challenged brick-and-mortar retailers, who are already facing operational pressures from rising costs and changing consumer habits.

Despite these challenges, the German Retail Association forecasts a modest increase in overall holiday sales for the months of November and December. The organization projects total revenues to reach approximately 162.2 billion euros, marking a 1.5 percent rise compared to the previous year. This expected growth suggests that while the in-store retail environment is under strain, broader consumer spending remains stable, thanks in part to ongoing demand for holiday-related goods and services.

Retail experts highlight the need for businesses to adapt to shifting customer preferences by enhancing their online presence and improving the overall shopping experience, both in-store and digitally. As the holiday season progresses, retailers are closely monitoring consumer sentiment and hoping for a late surge in activity to bolster year-end results.

In summary, while the 2025 holiday shopping season began with slower momentum for many physical retailers in Germany, there remain opportunities for growth amid evolving market conditions and consumer expectations. The coming weeks will be critical in determining the ultimate success of this year's holiday sales period.