March Brings a Mixed Bag for German Retail Sales

In a revealing update from Germany's statistical office, Destatis, the retail sector showcased a 2.2% increase in real terms for March compared to the previous year, after adjusting for calendar and seasonal effects. However, the month-on-month comparison tells a different story, with a slight 0.2% decline in turnover.

Nominal Figures Tell a Different Story

When looking at nominal terms, the scenario shifts. Retail sales experienced a 2.1% drop on a monthly basis and a modest 0.5% decrease year-on-year in March, highlighting the impact of price adjustments on consumer spending.

Food vs. Non-Food Retail Dynamics

The food retail sector saw a 0.3% increase month-on-month and a 0.5% rise year-on-year in real terms. Conversely, non-food retail trade faced a 0.6% decrease from February but enjoyed a 3.7% growth compared to March 2024, indicating varying consumer priorities.