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German retailers see strong demand despite crisis

Published 12/21/2008, 11:41 AM
Updated 12/21/2008, 11:45 AM
TGT
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By Susanne Neumayer-Remter

BERLIN, Dec 21 (Reuters) - German retailers reported solid demand in this year's Christmas shopping season despite the global economic crisis and sales could even exceed last year's level, the HDE retail association said on Sunday.

"The consumers have not let all the 'crisis talk' distract them and they're buying like they always have," HDE spokesman Hubertus Pellengahr told Reuters Television. "There's been no decline whatsoever.

"The crisis and recession haven't hit the shopping here yet," he added after the end of the year's most important shopping weekend. "The expectations of the retailers have not, however, been completely met yet."

Germany and the euro zone fell into recession this summer and face a deteriorating economic outlook.

HDE has forecast an overall 1 percent decline in 2008 German retail sales in real terms but nevertheless predicted a 1 percent rise in Christmas season sales, Pellengahr said.

Christmas season sales were running marginally below last year but could still end up meeting the target of a 1 percent rise.

"That's still possible," he said.

"Pessimists were predicting it would be the 'worst Christmas shopping of all time'," Pellengahr said. "That didn't happen."

Pellegahr said that the survey of 500 companies found that sales of jewellry, sporting goods, toys, electronic goods and perfumes were stronger than expected while clothing sales were less satisfactory, due in part to mild winter weather and rain.

The HDE said consumers were at first slow to start their major Christmas shopping and retailers had been counting on sales to peak this weekend. He said they were also counting on strong sales for the final 2-1/2 days of business to Dec. 24.

(Writing by Erik Kirschbaum; Editing by Erica Billingham)

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