Germany’s retail sector is set to shrink with 9,000 shops and small businesses expected to close in 2023, according to the Handlesverband Deutschland, the national retail association of Germany.
According to figures from 2021, the country’s retail sector is Germany’s third-largest – accounting for 17% of its gross domestic product.
The group’s head, Alexander von Preen, said in a statement: “In view of the figures from recent 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 prospects for the future.” He added: “If trade dies, the city dies. Trade is not only the supplier of 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 achievements are in danger.”
The situation in the capital Berlin is far worse, according to Nils Busch-Petersen, head of the Handlesverband Berlin, Berlin’s retail association.
Busch-Petersen told Anadolu that so far 2,500-3,000 businesses have closed and he expects the number to rise. “The situation is complicated because the retail industry is still suffering, beginning with the (February 2022) war in Ukraine. Even all the other branches have problems because the behavior of the customer changed totally,” he said.—AA
