Due to high costs and hesitant customers, German retailers are expecting massive store closures. The German Retail Association (HDE) predicts that around 9,000 businesses will close this year. “In the current year, higher costs in particular are putting pressure on sales and profits for companies,” says the HDE. “In addition, the high inflation leads to a loss of purchasing power among consumers.” At the end of 2023, 311,000 shops remained nationwide (not including small businesses).
In the years 2020 to 2022, which were strongly influenced by the consequences of the corona pandemic, the number of shops per year fell by 11,000 and thus significantly more than in the pre-crisis years 2015 to 2019, when 5000 shops closed every year.
“The small non-food specialist trade is particularly affected,” said HDE President Alexander von Preen. “In view of the figures from the last few years, all the alarm bells must be ringing in all inner cities and in politics. Because without successful retail, the city centers have hardly any future prospects.” Originally, the HDE even assumed a drop of 16,000 transactions for the past year. However, such a large wave of closures was also prevented with the help of measures by the federal government such as energy and gas price brakes.
“If trade dies, the city dies,” said von Preen. The retail sector not only supplies the population, but is also characterized by its diverse social commitment on site and is also the caretaker of the cultural area of the inner city. “These services are in danger,” warned the HDE President. The HDE advocates a start-up offensive in order to support one of the main pillars of the inner cities with the retail trade. “Unbureaucratic and fast approval processes for conversions and rededications must be at the top of the list of priorities,” von Preen demanded. There should be settlement managers across the board. It must be in the interests of all inner city stakeholders to close gaps in city centers as quickly as possible. Otherwise there is a risk of further chain reactions with even more vacancies and a downward spiral.