Low turnover, high rents and a decline in the number of tourists are driving large department stores in German city centers out of business, the news service of the German television channel ARD Tagesschau reported on March 11.
For decades, department stores have been considered the center of shopping streets in German urban centers and an important attraction for shoppers. However, this commercial sector is currently going through a crisis.
According to the Federal Statistical Office, in 2023 the turnover of department stores, including prices, decreased by more than a third (34.8%) compared to 2003. During the same period, retail sales in stores increased 11.3%, while mail order and online sales grew by 170.1% in real terms.
In 2022, after the pandemic, department stores recorded sales growth of 13.1% in real terms compared to 2021. However, just one year later, in 2023, sales fell again compared to the previous year, 3.9% in real terms.
The decline in sales was accompanied by staff reductions in department stores. In 2023, the number of employees in this retail industry was one fifth (21.7%) less than in 2003.
The total number of department stores has also decreased: if in 2004 there were 290 in Germany, 15 years later there were only 175 left. In 2023, the book retail trade will suffer equally high losses: -44.1%.
However, retail sales of shoes and leather goods grew by 40.5% in 20 years, and the consumer electronics industry even recorded a sales increase of 175.7% in 2023 compared to 2003.
Source: Rossa Primavera
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