Retail

Germany retail climate drops to -27.7 in February

11 Mar '26

1 min read

Germany retail climate drops to -27.7 in February

Pic: Aliaksandr Antanovich / Shutterstock.com

Insights

Germany's retail business climate weakened in February as companies grew more cautious about current conditions and future prospects.
Weak sentiment across sectors, including clothing and furniture, reflects concerns over geopolitical risks and rising energy costs.
Retailers are planning price increases while cutting staff, slightly easing the shortage of skilled workers.

According to the ifo Institute, Germany’s retail business climate fell to -27.7 points in February from -24.1 in January. Companies were more reserved about their current situation, and business expectations remained weak.

“Retailers made a subdued start to the new year,” said ifo expert Patrick Höppner adding, “If the current geopolitical risks persist for longer and energy in particular becomes more expensive, it could dampen consumer sentiment. That would also put additional strain on retailers.”

Sentiment cooled in many sectors, including furniture stores and clothing retailers. “Overall, sentiment in the retail sector remains gloomy in many cases, both for wholesalers and retailers,” Höppner noted.

On balance, slightly more retailers in February planned to raise prices in the coming months. Retailers were also more likely to cut staff than hire, which has contributed to a modest easing of the shortage of skilled workers.

Fibre2Fashion News Desk (JP)

More Retail News - Germany...