Moderately hopeful, but with a degree of caution.
The retail scene in Düsseldorf is bracing for a nominal small surplus, predicting a turnover of approximately 1.04 billion euros for the festive season. However, after accounting for inflation, the actual revenue is expected to take a hit, roughly estimating a 4% decline. TheDecreasing sales are partly due to the ongoing energy crisis and consumers' cautious spending habits as a result of high inflation rates. The economic fallout from the Ukraine war has been particularly hard on retail and consumer-focused wholesale since spring 2022.
According to the Conjuncture Barometer Rhineland, the business climate has significantly cooled. Michael Wenge, CEO of the Bergische IHK, noted that geopolitical tensions, persistent inflation, rising interest rates, soaring labor costs, and high energy prices are putting an excessive burden on many businesses, hindering a swift recovery. Gregor Berghausen, CEO of the IHK Düsseldorf, echoed the sentiments, stating that these factors have been weighing heavily on businesses since early 2022. Over 2,800 companies contributed to the survey for the Conjuncture Barometer.
Despite the grim economic outlook, the labor market remains stable, giving the Retail Association NRW - Rhineland (HVR) reason to be optimistic about the festive season. A representative survey revealed that residents of Düsseldorf intend to spend an average of 516 euros on gifts—higher than the national average. The city's six inaugural Christmas markets, opening on November 23 and running daily from 11 am to 8 pm (excluding All Saints' Day and Christmas Day), aim to boost this spending.
The renowned Christmas markets are complemented by the illuminated promenade of Königsallee and the lustrous Lichterdom. An additional spectacle is the Sunday shopping event on December 3, anticipating a busy shopping weekend for the city's retailers. Furthermore, Düsseldorf is expecting a surge in visitors from abroad, as announced by Visit Düsseldorf, which already has more bus registrations than the previous year.
In light of the Conjuncture Barometer's findings, the retail industry in Düsseldorf is grappling with numerous challenges, including inflation, rising interest rates, and high energy prices, which have been hindering businesses since early 2022. However, the finance sector may witness a slight boost during the festive season, as residents in Düsseldorf are planning to spend an average of 516 euros on gifts, higher than the national average.
