Retail in the crisis: loss of sales and worries around 2025!

Retail in the crisis: loss of sales and worries around 2025!

The year 2023 was extremely challenging for German retail. Many dealers reported loss of sales and uncertain views for the coming year. In a survey by the German trade association (HDE stated about 40 percent of the respondents to record total sales compared to the previous year. These concerns had been reinforced by a disappointing Christmas business, which was left behind the expectations. Almost half of the owner -managed shops complained about lower sales and a continued reluctance of customers when shopping.

Financial uncertainty and political situation

The reluctance of consumers was associated with the current political situation in Germany and the internationally tense situation by many dealers. The HDE expects a slight upswing for 2023, but the survey data show that around half of the retailers are unsure about economic development in 2025. Commercial Association President Alexander von Preen found that the mood among the dealers was strongly depressed by global conflicts and political uncertainties.

Despite these negative views, there are differences within the market. For example, while perfumery and cosmetic transactions recorded a positive Christmas business, jewelers and jewelry dealers rank in a similar routine. Sales in the jewelry area remained at the previous year's level, while sales at clocks decreased slightly. Book and toy transactions were also able to report relatively good sales figures.

expectations for 2024

The HDE expects less sales for the coming year than in 2023, and the outlook is dampened due to political uncertainties. Consumers are increasingly holding their money together, which negatively affects shopping behavior. The HDE predicts an inflation -adjusted sales minus of three percent. While a nominal increase of two percent is sought, the reality looks more like a small minus.

online trade as a growth driver

A ray of hope remains online trade, which continues to be a growth driver. Around 36 percent of the retailers surveyed operate their own online shop, while 19 percent sell via online marketplaces. Nevertheless, 56 percent of dealers do not sell goods on the Internet. HDE President of Preen drew attention to the challenges, but also the opportunities of digitization for dealers without online sales.

Personnel challenges in retail

The industry also faces an increasing shortage of skilled workers. Over 3.1 million people are employed in retail, but 63 percent of dealers complain about a lack of workers. At the same time, more than 50,000 jobs are open in the industry. Against this background, the HDE launched a comprehensive training campaign entitled "Career Trade" to win more qualified workers.