Less sales due to 2G rule: retailers hope for relaxation

Status: 02/01/2022 12:25 p.m

The tightened corona rules caused retail sales to fall at the end of the year. However, the online business still provided a small plus overall in 2021. The industry is now hoping for the coming months.

A plus for the year as a whole, but clear sales losses for German retailers in December – stationary trade in particular suffered from the restrictions in the fourth wave of the pandemic in 2021.

The nationwide introduction of the 2G rule, according to which many shops are only allowed to let in those who have been vaccinated and those who have recovered, as well as delivery bottlenecks slowed down stationary trade at the end of the year. Sales fell by 5.5 percent in real terms from November to December. “Parts of the stationary retail trade, such as the retail trade in textiles, clothing, shoes and leather goods, also had to accept a drop in sales in the second year of the Corona crisis,” the Federal Statistical Office summed up.

How much does inflation leave from the increase in sales?

However, the booming online trade still provided a plus for the year as a whole. In 2021, total retail sales adjusted for price increases increased by 0.7 percent. In nominal terms, the industry saw an increase in sales of 2.9 percent for the year as a whole compared to 2020, the year with the highest sales to date.

Sales are currently still slowed down in many federal states by the 2G rule. The HDE trade association criticizes what it considers to be excessive corona containment measures. Shopping with a mask, distance and hygiene measures is safe, so the 2G rule is not required in retail.

For the current year, however, the association expects sales to increase by three percent to 605.4 billion euros thanks to slow relaxation. Because of the high inflation, not much of it will stick. Price-adjusted, the HDE expects stagnation.

“There are clear losers”

“Although sales will grow overall, there are clear losers,” says HDE CEO Stefan Genth. Smaller businesses and shops in inner-city locations are still on the defensive. The 2G rule in retail still applies in most federal states. In Bavaria and Baden-Württemberg, 2G has now been overturned following decisions by the administrative courts.

The HDE sees impulses in the coming months, especially in online trading. It is expected to grow by 13.5 percent in the current year, while the association only expects growth of 1.2 percent for traditional retail. With an increase of more than 20 percent above the level of February 2020, online and mail order trade was the decisive sales driver in 2021 as well.

Every seventh euro spent on groceries, electronics, furniture and clothing last year ended up in the tills of online retailers. This is shown by figures from the e-commerce association BEVH.

source site