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Corona shutdowns: retail trade requires perspective and better financial aid before extension

2021-01-04T17:37:42.628Z


The existence of two thirds of the shops in the city centers is threatened according to a trade association survey. The industry feels left alone - and demands improvements to the Corona aid.


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Call for help from a Cologne retailer: "There has to be readjustment"

Photo: 

Rolf Vennenbernd / dpa

The prospect of a further week's shutdown has hit retailers in Germany's inner cities hard.

Almost two thirds of the business owners in the pedestrian zones see their existence threatened according to a survey by the HDE trade association.

Three quarters say that government aid is insufficient to avert bankruptcy.

In a letter to Chancellor Angela Merkel (CDU), retailers have now demanded prospects for the upcoming extension of the shutdown - and an adjustment in state support.

"Federal Finance Minister Olaf Scholz always announces billions in aid, but the aid is not actually paid out because the access barriers are far too complicated and too high," says a statement from HDE Managing Director Stefan Genth.

He spoke of a "scandal" that the companies were so poorly supported.

Wave of insolvency threatens tens of thousands of businesses

The trade does not receive the same support as the catering trade, and the way the corresponding bridging aid has been equipped up to now will not be enough for many, Genth told the »Handelsblatt«.

"There has to be readjustment, not necessarily in terms of volume, but definitely in terms of accuracy," he said.

"The upper limits on sales exclude retail companies from effective assistance that urgently need support."

According to Genth, it's "just after twelve" for many traders.

In the past week alone, the affected retail trade lost around five billion euros in sales, and in 2020 it was around 36 billion euros.

"If the prime ministers decide together with the chancellor to close our shops again, they must also provide the necessary support," HDE boss Genth now demanded.

Shops that did not sell groceries felt left alone, and retailers could not move from one lockdown to the next.

An extension of the corona restrictions until the end of January is currently being discussed, and several prime ministers are advocating this.

There should be exceptions for students in the lower grades.

The federal and state governments want to discuss the situation on Tuesday.

The HDE sees the retail sector facing a wave of bankruptcies.

Many retail companies affected by the two-time shutdown would have consumed their equity.

It threatens the end for up to 50,000 businesses with over 250,000 employees.

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apr

Source: spiegel

All business articles on 2021-01-04

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