German retail sales decline set to ease

Frankfurt: Germany’s retail sales decline will ease this year after tax cuts put more cash into consumers’ hands, an industry group said.

Sales in 2010 will fall 0.5% adjusted for inflation, the HDE retailers’ association said in Dusseldorf, repeating an earlier forecast.

Sales fell 1.9% on that basis last year.

The HDE estimates a more than €15 billion benefit for consumers from government moves to cut taxes and increase family allowances.