As of: February 7, 2024, 3:14 p.m
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A German city center: The great decline of shops is noticeable in many places.
© Frank Rumpenhorst / dpa
The retail association HDE expects many store closures in German city centers again in 2024.
This would have dire consequences for them, says President Genth.
Berlin - The retail association HDE is again expecting a large number of shops to die this year.
A total of 5,000 stores are likely to close forever, as the German Trade Association (HDE) predicted on Wednesday.
From 2020 to the end of the year, the business closures are expected to total 46,000 stores.
“This is bad news for retail, but especially for city centers,” said HDE managing director Stefan Genth.
“For many people, the main reason for visiting a city center is shopping.
If business goes away, the entire city center suffers.”
The economic downturn and high inflation are currently weighing on the industry.
According to HDE, retail sales only grew last year thanks to price increases, by 2.9 percent to almost 650 billion euros.
Adjusted for inflation, however, they shrank by 3.4 percent.
Things are expected to go a little better this year: sales are expected to increase by 3.5 percent, which in real terms corresponds to an increase of one percent.
Industry association calls for immediate aid
The industry association is calling for immediate measures to prevent shops from dying.
All actors from retail, municipalities, gastronomy and culture would have to work together on site.
“Only if everyone pulls together can the desolation of entire inner cities be prevented in many places,” said Genth.
The increasing number of vacancies is dragging entire city centers into a downward spiral.
Although retail is the core industry with the greatest pull on city centers, it cannot solve this challenge alone.
“As HDE, we and other city center stakeholders are members of the city center advisory board, which is headed by the Federal Minister of Construction,” said Genth.
“The inner city development is therefore a matter for the boss.” However, the responsibilities lie in different federal ministries, at the state level and with the municipalities.
“This makes targeted action more difficult.” What is therefore needed is a central contact point for coordinating funding programs and sensible implementation of measures.
(Reuters, lf)