The German retail federation, the Handelsverband Deutschland (HDE), is maintaining its forecast of a slight increase in retail sales of two percent for the year 2025. The federation announced the continued projection on Monday.
A recent survey conducted by the HDE, encompassing approximately 650 retail businesses, reveals a cautious outlook for the second half of the year. Forty-two percent of retailers anticipate stagnant sales, while a significant portion – just over a third – are bracing for potential revenue declines.
The sector is currently grappling with rising ancillary labor costs, prompting the HDE to advocate for a cap of 40 percent on total social security contributions.
“The retail sector will judge the new German government based on its actions” stated HDE President Alexander von Preen. He emphasized that the government had pledged to deliver tangible relief and stimulate economic growth, which retailers are counting on. Von Preen highlighted the industry’s demonstrated commitment to responsibility in recent years and urged policymakers to now fulfill their own, by implementing relief measures that directly benefit retailers.