Australian Wool Innovation Limited informs that a signs of improving conditions which began to emerge from the German domestic retail industry in November have been unexpectedly halted by the release of poor December results.
According to data released by the Federal Office of Statistics, November retail sales were disappointing - high unemployment levels in recent years had previously bred some insecurity among German consumers, hampering private consumption.
The industry had pinned hopes on December's results with anecdotal reports suggesting a slight rebound in demand and sales, helped by a cold snap which prompted consumers to lift their purchases of textiles and shoes. However, with a rise in unemployment, the retail rebound did not materialise in December.
The German Retailers' Federation, on the other hand, have been reported as questioning the retail sales figures because they do not match anecdotal evidence of brisk business by its members in December.
According to GfK, who produce a closely watched consumer sentiment survey, the upcoming month long soccer World Cup which will take place in Germany in June and July, is seen as a modest positive for the retail sector.
Reports also suggest that retail sales may rebound in January as Germans take advantage of special offers.
Australian Wool Innovation Limited
marketing@alchempro.com
