German retailers aren’t feeling very festive

When the (KDW,HDEGKKaufhaus des Westensaee) a temple of consumption in West Berlin, celebrated its 115th birthday last month with a glitzy champagne party for 2,000, the mood was sparkling. A row of brightly lit Christmas trees greeted partygoers when they entered the ground floor of the grand old lady of Berlin’s department stores, where Chanel, Dior, Gucci, Tiffany’s and other luxury brands vie for their attention. As guests danced through the night, the war in Ukraine, sky-high inflation and other worries seemed far away.That cheer, also on display at Christmas markets around Germany, disguises deep unease—among shopkeepers and their clients alike. Only around a quarter of 400 retailers surveyed by Handelsverband Deutschland (), the retail association, are happy with the Christmas shopping season so far. Retail sales in October were a bad omen, plunging by 5% compared with last year, a bigger drop than expected. That month consumer confidence sank to the lowest level since f, a research firm, started to survey it in 1991.