Almost half of the retail trade in Germany expects sales to be at or just above last year’s level, about a third expects them to be slightly below it, and 18 percent expect a significant decline. These are the results of a recent survey of around 900 retail companies by the German Retail Association (Handelsverbandes Deutschland, or HDE). The HDE expects a price-adjusted decline in sales of 3 percent for the current year.
“The retail sector is holding its own in 2023 under conditions that remain difficult, but is losing ground slightly. The number of businesses in the retail sector will continue to decline. The environment remains characterized by uncertainty. However, digitalization continues to offer great opportunities,” says HDE president Alexander von Preen.
Online retail remains the growth driver. Here the HDE expects a nominal increase of 8 percent from last year, which corresponds to price-adjusted growth of 4 percent.
The worsening shortage of skilled workers remains a concern. The HDE survey shows that 63 percent of retailers are suffering from labor shortages. Current figures from the German Federal Employment Agency reveal that more than 50,000 jobs in the sector are vacant.
The HDE therefore recently launched a training campaign called ”Karriere Handel.” In addition, the association is calling for investment and innovation within vocational schools as well as more recognition for the opportunities and advantages of vocational training.
