Business | Cutback Christmas

German retailers aren’t feeling very festive

War, inflation and fears of recession are weighing on shoppers’ minds

2KYY3AA Some barrier grids, mostly made of plastic and a few steel ones, are the only protection against terrorist attacks with vehicles at the Berlin Christmas market in front of Charlottenburg Palace on December 2, 2022. A long dispute over security costs has led to this situation. Police officers provide security at the entrance of the Christmas market. People visit the Christmas market despite this situation, enjoying hot food and drinks in cool temperatures. The scent of mulled wine is in the air. The palace is illuminated in many colors, very often in the colors of the Ukrainian flag. (Photo by — Dark mood at the Christmas marketImage: Alamy

Dec 15th 2022|BERLIN

When the Kaufhaus des Westens (KaDeWe), 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.

This article appeared in the Business section of the print edition under the headline “Cutback Christmas”