Following the Covid years, the retail sector in Germany is set to lose 9,000 more stores (across all consumer goods segments) in 2023, according to a forecast by the German Retail Association (HDE). Increasing vacancies in many city centers are making locations less attractive and putting more businesses at risk. HDE is therefore calling for a start-up offensive with incentives from policymakers and the creation of location managers.
In the years 2020 to 2022, which were heavily impacted by the effects of the Covid-19 pandemic, the number of stores declined by 11,000 doors per year, significantly more than in the years 2015 to 2019, when the figure was 5,000 per year. If 9,000 stores were to close this year, this would leave 311,000 stores nationwide by the end of 2023, excluding micro-enterprises. In the current year, higher costs are putting particular pressure on companies’ revenues and profits. In addition, high inflation is leading to a loss of purchasing power among consumers.
Image: Masaaki Komori on Unsplash
