The German interactive retail sector showed solid growth of 10% in the first quarter of 2012following record sales of €34 billion in 2011 thanks to the continuous boom in online shopping,
according to the German E-Commerce and Distance Selling Association (bvh).This strong growth outpaces a general recovery in the overall retail sector in Germany thanks toa stable economy, low inflation and low unemployment. After a decline during the second half of2011, the economic situation on the country’s retail market has stabilised again and is showing anupward trend, according to the latest survey by the German retail association HDE of 850companies.
The German distance-selling industry increased revenues by 10% to €8.95 billion between Januaryand March 2012, the bvh said. E-commerce revenues grew by 18% to €6.34 billion, and made up 71% ofthe total revenues compared to 66% in the first quarter of last year.
During the first quarter of this year, the most popular, growth-driving product group,consisting of clothes, textiles and shoes, increased sales by 10% to €3.2 billion. Thesecond-largest product group, covering consumer electronics, grew by 9% to €1 billion. The thirdbest-selling product segment, consisting of media products, increased sales by 17% to €900 million.Computers and accessories also grew strongly, up 20% to €710 million.
Compared to the first quarter of 2011, the product group “household appliances” recorded thebiggest revenue increase growing by 93% to €270 million. Other products generating strong revenueswere furniture and decoration articles increasing by 26% to €480 million.
“The figures for the first quarter of 2012 confirm bvh’s recent forecast for sales of goods in2012. The bvh predicts sales of €36.5 billion for interactive trade as a whole and of €21.7 billionfor e-commerce. Looking at the second quarter of 2012, which was strong in 2011, we are eager tosee if we can reach similarly successful figures this year,” bvh executive director ChristophWenk-Fischer said.
The results are based on the study “Interactive Trade in Germany” carried out this year for theseventh time by the research institute TNS Infratest on behalf of the bvh. As part of the research,around 30,000 German adults (over 14) are interviewed about their spending behaviour andconsumption of digital services between January and December 2012. The Q1 results are based onevaluation of responses between January and March 2012. The full 2012 results will be published inearly 2013.
Meanwhile, the HDE painted an optimistic picture of the outlook for German retailers this year,although it highlighted the risks of rising energy prices and the uncertainties of the euro crisis.Executive director Stefan Genth predicted: “Across all industries, companies expect stable orgrowing revenues for the first half year, especially thanks to the good general economic climateand the high level of employment.”
For the whole year 2012, the retail association expects a revenue increase of 1.5%, which isabove the long-term average trend. German retailers suffered an overall 1.9% decline in revenueover the last six years.
According to the German Federal Ministry of Economics and Technology (BMWi), the country’seconomy seems to have slowly overcome its temporary weak phase based on the latest relevantbusiness indicators. “Chances are that economic activity will further increase this spring so theGerman economy can leave the difficult winter half-year behind,” the ministry stated.
