Retailers in Germany are suffering from corona measures. In addition to the closure of non-essential stores, retailers are also struggling with an increase in sales tax, which had previously been temporarily reduced due to the crisis.
Especially entrepreneurs in the fashion industry are having a hard time.
According to the German statistics office, retail sales in Europe’s largest economy fell by 4.5 percent every month in January. The decrease was, therefore, much more substantial than the 0.3 percent that economists generally took into account. The decrease follows a decrease of 9.1 percent a month earlier. On an annual basis, turnover fell by almost 9 percent in January.
Many shops in Germany have been closed since 16 December. Furthermore, many consumers made large purchases in the last weeks of 2020 because of the temporary sales tax scheme to save money.
In the fashion industry, the year-on-year decline in sales was 76.6 percent. On the other hand, Germans spent 4.3 percent more on food in supermarkets and convenience stores. Online spending increased by almost a third.
On Wednesday, the Merkel government will discuss whether or not to relax the measures. The current measures will be in force until at least 7 March.
