Retail sales in Germany fell to the lowest in 28 years

According to the German federal statistical office Destatis, sales in the retail sector decreased by almost 9% compared to last year, which is the worst indicator in 28 years.

In particular, retail sales fell by 8.8%, which was the biggest decline since 1994.

Analysts note that this behavior of buyers is primarily due to rising prices – high inflation (7.6%) has a significant negative impact on consumer sentiment. According to the statistical bureau, the demand for products decreased by 7.2% compared to last year's data, the demand for clothing and shoes – by 5.4%. Online sales also decreased by 15.1% y/y.

On a monthly basis, retail sales in Germany fell by 1.6% compared to the previous month. Analysts at the same time expected an increase of 0.2%.

Food sales in June decreased by 1.6%, non-food products – by 3.3%. Online sales and orders of goods by mail decreased by 3.8%.