Provisional figures show that German retail sales fell by 0.9% in June from the previous month, following a sharp rise the previous month. Analysts had forecast a smaller June fall of around 0.3%.
On an annual basis, retail sales in the biggest European economy gained 3.1%, mainly because there was one more shopping day this year than last.
The figures indicate that German shoppers are still holding back even though the economy is surging out of its worst post-war recession thanks to strong performances by exporters.
Consumer sentiment has improved and unemployment could fall further, but the stores are not really seeing any benefit so far.
In the first six months of the year, retail sales slipped by 0.4% from their level in the same period of 2009. This measure is considered more reliable than monthly data from the statistics office Destatis, which are often revised later.
