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 vied for their attention. As guests danced through the night, the war in Ukraine, sky-high inflation and other worries seemed far away.

That cheer, also on display at Christmas markets around Germany, disguises deep unease – among shopkeepers and their clients alike. Only around a quarter of 400 retailers surveyed by Handelsverband Deutschland (HDE), the retail association, are happy with the Christmas shopping season so far.