Price increases announced
Delivery bottlenecks are now also affecting Germany’s hardware stores
Queues in front of the checkout of a hardware store: Some retailers are already limiting the quantities sold
© Sven Hoppe / DPA
Now another industry is feeling the turmoil in world trade: the global distortions in the supply chains are putting Germany’s DIY megastores with garden centers under pressure.
Even in hardware stores, not all shelves can be filled as desired. Occasionally limited dealers sell quantities, “so that offers are available for all customers and not individuals buy up entire groups of goods,” says the general manager of the DIY, building and gardening trade association, Peter Wüst.
It is to be feared that there will be “clearly noticeable effects” for the markets for some time to come. “Many suppliers are currently terminating their contracts with trading partners across the board and are announcing massive price increases and delivery bottlenecks.”
Is it getting more expensive for consumers? The representative of the association emphasized that the industry is “traditionally very price-conscious” and will continue to find ways to offer the goods at comparatively attractive prices. A spokesman for the Bauhaus hardware store chain said with regard to the supply chains that the situation was “very dynamic and tense”. But one cannot make a long-term statement about delivery times and price developments. (Read here what consumers need to know about delivery bottlenecks)
There are many reasons for the turbulence in world trade: After the corona crisis year 2020, with the economic recovery, demand soared after many companies had cut production. At the same time, containers are scarce. In addition, there were serious events such as the wreck of the container ship “Ever Given” in March in the Suez Canal, which blocked this important route for days.
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Association representative Wüst expects that the general situation and thus the shortage of raw materials will be regulated in two to three years. In this year’s Christmas business, he does not expect the situation to “worsen further” in hardware stores and specialist garden centers. This section of the financial year is rather unimportant for the industry – customer demand should not pick up again until spring.