German retail survey notes frosty pre-Christmas sales

The majority of German retailers are dissatisfied with sales so far in the key pre-Christmas season, according to a new survey in the midst of prolonged stagnation in Europe's largest economy.

As a week dominated by discounts during Black Friday sales drew to a close, 60% of 300 companies reported weak business in the final week of November, the German Trade Association said on Sunday.

"Saturday was a bright spot in many places with slightly better takings and offers some hope of a noticeable boost to sales" in December weekends, HDE Chief Executive Stefan Genth said.

Around 25% of businesses surveyed between November 28 and November 30 said they were satisfied. However, looking at the overall season so far, only 14% of retailers are satisfied, notably in toys, watches, jewellery and consumer electronics.

Some 70% of respondents reported fewer visitors than a year earlier, though approximately one in five companies expect more business in the coming weeks, HDE noted.

"The final sprint at Christmas will decide the success of the entire financial year for many retailers," Genth added.

According to the HDE, retailers expect total turnover of EUR126.2 billion for this year's Christmas season in November and December, a 1.5% increase compared with the previous year.