German consumers remained cautious about Christmas shopping in city centres during the first week of December, according to a survey by the German Retail Federation (HDE).

Just over two thirds of retailers surveyed expressed dissatisfaction with business so far in the run-up to Christmas.

Sentiment is somewhat better among retailers in suburban areas and in certain segments, such as toys or consumer electronics. However, a commercial breakthrough is still lacking, according to the retail association.

Nonetheless, HDE chief executive Stephan Genth is convinced many people still want to give their loved ones Christmas presents this year.

“Given the many uncertainties regarding the current international and economic situation, many are paying closer attention to their money,” he said.

Furthermore, bricks-and-mortar shops face online competition, particularly from platforms such as China-based Temu or Shein.

The association expects total Christmas-season sales in November and December to reach around €162.2 billion ($189 billion), 1.5% higher than last year.

dpa