The mood among German retailers is deteriorating. This was already falling before the outbreak of the Iran War Business climate barometer in February to minus 27.7 points, as the Munich ifo Institute announced. Minus 24.1 points had already been recorded in January. This affects many industries Retailincluding furniture stores and clothing retailers. The companies particularly cited their current business situation and the outlook as reasons for the clouded mood. In contrast, there was a slight improvement in food retail and car dealerships.
“Retailers started the new year cautiously,” said ifo expert Patrick Höppner. “The mood in retail remains cloudy in many cases, both among wholesalers and retailers.” This is also evident in one Comparison of the business climate between different economic sectors: The retailers therefore assess their current business situation as less favorable than companies in the manufacturing sector, in the service or construction sector. Traders are also particularly pessimistic when it comes to business expectations.
Plans for price increase
“If the current geopolitical risks last longer and energy in particular becomes more expensive, this could dampen consumer sentiment,” said Höppner. “This would put an additional burden on retailers.” More and more retailers are planning to increase their prices in the next few months. In addition, retailers are more likely to reduce rather than increase employment. As a result, the shortage of skilled workers for retailers has recently eased somewhat, it was said.