BERLIN, (Reuters) – German retailers anticipate Christmas sales rising 2% to 111.7 million euros ($129.06 Billion) despite inflation, delivery difficulties and a new wave coronavirus infection, according to the HDE industry association.

HDE Chief Executive Stefan Genth stated that “high levels of savings and strong consumer sentiment points to a forgiving finish to the year following what was, for many retailers, a difficult first half-year due to lockdowns that threatened to end their existence.”

The online market is expected to shrink by 17.3% and reach 23.1 billion euros (or $26.69 billion). This will help to save Christmas.

The optimistic outlook is despite the fact that German retailers face the same challenges as other industries. Approximately three quarters of companies polled by HDE to forecast their future sales said they could be affected by supply shortages.

Genth indicated that although consumer electronics may feel the effects of the shortage on global chips, household appliances and other electronic devices will be fine.

The German government could be affected by inflation, at 4.5%.

Genth stated that it will all depend on the outcome of the pandemic over the following months as well as the safety measures in place to determine whether or not the HDE forecast is true.

As the German government sought to end the pandemic, retailers across the country had to shut down their doors for the last winter.

Genth said that no one could afford this anymore and added that the retail outlets are not hotspots to spread coronavirus.

Germany’s infection rate has risen to its highest level https://www.reuters.com/world/europe/german-coalition-parties-table-coronavirus-draft-law-monday-2021-11-07 since the start of the pandemic, public health figures showed on Monday.

The 7-day incidence rate, which is the ratio of infected people to 100,000 over the past week, rose to 201.1.

($1 = 0.8655 euros)