Cold weather helps fashion retailers: sales up in week 43 – but the mood stays gloomy
Falling temperatures, rain and storms have finally brought more sales to Germany's bricks-and-mortar fashion stores. According to Ifo, however, business sentiment worsened markedly in October.
Graphic: TERRA WORLD NEWS (own graphic based on the sources listed)
Most bricks-and-mortar fashion stores in Germany ended calendar week 43 with higher sales, trade journal TextilWirtschaft reports from its weekly retailer panel, the TW-Testclub. Temperatures had dropped into single digits in many places, and heavy rain and, in some areas, strong storms further boosted demand for warm clothing. An unnamed retailer from the state of Hesse told the journal that jackets that had been hanging in the store for six weeks were suddenly selling: 'Who would have thought it?'
So far this has done little to lift the mood in the sector. According to a special analysis by the Ifo Institute for TextilWirtschaft, business sentiment among clothing and shoe retailers deteriorated markedly in October. In September, retailers had been more optimistic than in any other month this year. The analysis attributes the setback to the weak autumn trade, while the economy as a whole is being assessed increasingly positively.
Retailers are hoping for more in November. According to the TW-Testclub, additional events and rising demand for winter clothing as temperatures fall should mainly drive sales. With the run-up to Christmas beginning, stores are also counting on events and festively decorated city centres to attract shoppers.