March Brings a Mixed Bag for Germany's Retail Sector

In a revealing update from Destatis, Germany's statistical office, the retail trade sector experienced 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 figures tell a slightly different story, with a 0.2% decline in turnover.

Nominal vs. Real: A Tale of Two Metrics

When looking at nominal terms, the scenario shifts. Retail sales saw a 2.1% drop from February to March and a 0.5% decrease year-on-year. This contrast highlights the importance of considering both real and nominal figures to grasp the full picture of retail health.

Food and Non-Food Retail: Diverging Paths

The food retail sector enjoyed modest growth, with a 0.3% increase month-on-month and a 0.5% rise year-on-year in real terms. Conversely, non-food retail trade faced challenges, declining by 0.6% compared to February, despite a 3.7% growth over March 2024.