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Economy in Germany 2021 - Retail: Storm on the bike shops

2021-01-02T12:13:58.505Z


Boom in construction stores and supermarkets, crash in clothing, toys and jewelry: In hardly any other industry did the corona crisis produce so many winners alongside losers.


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Bicycle trade: big winner of the crisis

Photo: Malte Christians / dpa

If we had taken an inventory of consumers at the end of the past year, something unusual would probably have come about: We have no new jewelry, new shoes or clothes in the closet.

Instead, a well-stocked pantry in the kitchen, a paint bucket and a painter's roller in the basement - and a brand new bicycle.

The Corona year 2020 was turbulent for retailers: While consumption in previous economic crises had a stabilizing effect on the economy, this year it was primarily the double supply and demand shock that led to the economic crisis.

Not only did the supply chains tear in many places during the first shutdown;

consumption also collapsed completely at times.

The fashion industry in particular suffered from this - because there were no occasions or everyday office life, sales fell by around 30 percent in the first half of the year alone, reports the HDE trade association.

Toy dealers and jewelry stores also complained about a 15 percent drop in sales.

Snakes like in the post-war period

Meanwhile, condemned consumers overran supermarkets and hardware stores, buying kitchen appliances and vacuum cleaners like crazy.

And those who wanted to get rid of excess energy in the face of closed fitness studios and sports clubs got on their bikes - the bicycle industry posted an increase in sales of around 28 percent.

But not just what.

The way we shop also changed rapidly: buying with a click of the mouse caught on across Germany - which, according to HDE, was reflected in an increase in sales of around twenty percent for online retail in the first half of the year.

And when we went out to shop, we increasingly bought local, regional and organic: market stalls saw snakes like in the post-war era.

Despite the crisis - and the associated worry about the job - the price became less important, confirms GfK.

Which can also be seen in the double-digit leaps in sales of medium-priced supermarkets such as Rewe or Edeka, while the discounters only grew single-digit.

Avarice is cool seems to have been a thing of the past since Corona.

Many of these developments are likely to continue in the new year - at least as long as the pandemic continues.

Because it primarily strengthens existing trends such as digitization, sustainability and the retreat into private life.

Shopping online, ordering food, and exercising will become perfectly normal for many.

The Germans' desire to buy is likely to continue - although the city centers will get much less of that.

According to the HDE, three quarters of fashion retailers see their existence in danger by the end of December.

So, in 2021, the face of inner cities could change significantly as more and more delivery vehicles drive through the streets.

Icon: The mirror

Source: spiegel

All business articles on 2021-01-02

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