“Expectations for the coming months also remain cautious. The further cooling of the economy is having an impact on retailers, who have also recently had to cope with weakening consumer demand,” said ifo expert Patrick Hoppner in a release.
On the other hand, there have been improvements in issues with supply. In the retail sector overall, fewer and fewer companies are being affected by supply difficulties. In August, the figure was 34.8 per cent, down from 36.6 per cent in July. This proportion has been falling steadily over the course of the year. No apparel retailer, however, has been affected by supply problems.
“Supply problems due to disputes between manufacturers and distributors over prices and terms seem to be declining,” Hoppner said. “In contrast, stalled collective bargaining recently led to more strikes in some retailers’ logistics chains and thus also to supply problems.”
Due to the gloomy business situation in the retail sector, companies in some segments have also cut back on employment. The shortage of skilled workers is no longer as big a problem in most segments as it was recently.
Overall, 35.4 per cent of retailers reported problems recruiting skilled workers in the third quarter this year, down from 36.7 per cent in the second. The issue remains particularly pronounced in clothing retail and in food and beverage retail.
ALCHEMPro News Desk (DS)
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