Pedestrian zone in Munich: stationary retail is likely to continue to lose to the online market (picture from 2021)
Photo: Peter Kneffel / dpa
Adjusted for inflation, the retail trade in Germany expects shrinking sales this year.
The reason: dramatically increased energy costs and generally poor consumer sentiment.
"Rising inflation is massively reducing the purchasing power of customers," said HDE General Manager Stefan Genth in Berlin.
Due to the high inflation, retail sales would increase nominally by 3 percent to 607 billion euros this year, the HDE predicted.
In real terms – i.e. adjusted for inflation – this means a two percent drop in sales.
The majority of the growth is likely to come from online trading this year as well.
According to the HDE forecast, it could increase its sales by 12.4 percent to a good 97 billion euros.
Stationary trade should therefore increase by 1.4 percent to almost 510 billion euros - and thus again lose market share to online trade.
According to a recent HDE survey of 800 companies, almost half of retailers expect the business situation to deteriorate in the second half of the year compared to the second half of 2021, which was still heavily influenced by Corona.