Visualization image Credits: Aygin Kolaei for Fashionunited

The late consequences of Corona pandemic continued to increase retail.

Five years after the beginning of the first Corona Lockdown, many medium-sized textile, shoe and leather goods dealers are still fighting for their existence. At least this emerges from a message from the BTE Handelsverband Textil Schuhe Lederwaren published on Tuesday.

Half of the companies surveyed for this survey had ended up in the red figures last year, and only a little more than a third of the dealers: In 2024, in 2024 a positive operational result of more than one percent of gross turnover achieved. However, the consequences of pandemic are not entirely to blame, because stagnating sales are mentioned as the main reason at the same time.

Sales had reached the level of 2019 again for most companies in 2020 and 2021. In the same period, however, the costs for salaries, rents and energy have increased by around 20 percent, according to the BTE.

BTE managing director Axel Augustin warns that many companies no longer live on their income, but on their substance. During the Lockdown phases, numerous owners had to resolve their old-age provision and use insurance and reserves. In addition, state bridging aids temporarily ensured the survival of many companies. But now this aid of all places will bring additional problems.

Again and again the approval bodies of the federal states demand funds – partly on the basis of unclear formulations or subsequently changed conditions. Depending on the state, these are interpreted differently, which leads to uncertainties and bureaucratic hurdles. Districts: Inside, there are also endless questions confronted with the smallest amounts, which further tightens the already tense situation.

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