Retail sales in Germany record decline in H1 2023

In the 1st half of 2023, German retail recorded a year-on-year decline in sales of 4.5% in real terms, mainly due to increased prices. Internet and mail order retailing and DIY stores also recorded declines, while sales of textiles and clothing increased.

Wiesbaden - According to preliminary results from the Federal Statistical Office (Destatis), retail companies in Germany recorded a year-on-year decline in sales of 4.5% in real terms (adjusted for prices) in the first half of 2023. At the same time, nominal (non-price-adjusted) sales rose by 3.6%. The difference between the nominal and real results indicates the increased price level in the retail sector.

Food retailing particularly affected

Food retailing was particularly affected, with sales in the first half of 2023 down 5.8% year-on-year in real terms, but up 7.6% in nominal terms. The reason for the drop in sales in real terms was the significant rise in food prices, which were the strongest price driver in the first half of 2023. This has led to a continuous decline in food retail sales over the past two years compared with the respective month of the previous year.

Sales development in other sectors

The non-food retail sector also saw a decline in sales in H1 2023, with sales here falling by 3.6% in real terms but rising by 1.1% in nominal terms. Internet and mail-order retailing was hit particularly hard, recording a 7.3% drop in sales in real terms and a 2.6% year-on-year decline in nominal terms. DIY stores also recorded a decline in sales of 6.9% (in real terms) and 0.8% (in nominal terms). By contrast, the retail sector for textiles, clothing, footwear and leather goods reported sales growth of 7.3% (in real terms) and 9.3% (in nominal terms). Part of these results can be attributed to base effects resulting from the corona-related special developments in the previous year's period, particularly in internet and DIY retail, which at times reported high sales growth during the pandemic.

Further information can be found on the website of the Federal Statistical Office Destatis.