German consumers are facing stronger headwinds than expected in 2023 as inflation remains stubborn, the HDE retail association said on Tuesday, forecasting a 4% decline in revenue in real terms.

"Significantly higher costs for energy and goods as well as weak private consumption have put the retail trade under pressure in the first half of the year," said HDE President Alexander von Preen.

HDE had previously forecast a decline of 3% in revenue this year in real terms. (Writing by Friederike Heine, Editing by Rachel More)