After 2022, which was characterized by high inflation and sluggish consumption, the retail sector is starting the new year with little optimism. “Our current trend survey in retail shows that the majority of retailers do not expect sales to recover in 2023,” said the chief executive of the German Retail Association (HDE), Stefan Genth, the German Press Agency.
Because of the Ukraine war and its economic consequences, there is great uncertainty among consumers and retailers. “That’s why we’re going into 2023 with very modest expectations – more with concern than with a positive view,” said the industry insider.
“We are currently losing an enormous number of stores.”
The year 2022 got off to a good start for retailers. But Russia’s war of aggression in Ukraine then led to an unprecedented turnaround in consumer sentiment, Genth said. “In October we had an all-time low in consumer sentiment – and November and December brought only a slight brightening.” All in all, 2022 was a very mixed year for retail.
This is also evident in many inner cities. “We are currently losing an enormous number of shops.” In 2022 alone, he estimates, around 16,000 shops will have closed their doors forever. “A good three times as many as in a normal year,” said Genth. And it looks like this trend will continue in the new year.
“The range of shops is shrinking,” emphasized the HDE general manager. There are many medium-sized retailers who operate their boutiques, shoe shops, sports shops or perfumeries without a murmur. At the same time, many large chains are thinning out their branch networks not yet in the 1A locations, but you can see it in the districts of large cities, and you can see it above all in smaller and medium-sized towns and communities,” said Genth. (dpa)