Berlin (Reuters) – The bankruptcy of the Austrian Signa Group could worsen the already difficult situation of traditional retail in Germany, according to Creditreform.
The insolvency-related withdrawal of major investor René Benko from major retail projects with a “flagship character” is likely to have serious consequences, the credit agency explained in an industry report on Wednesday. “Since many of the real estate developer’s projects involved mixed-use concepts, the affected city centers and urban districts are now not only losing retail space, but also dining options and other stimulating elements.” In addition, the properties threatened to become ruins.
The corona pandemic and the general reluctance to buy have accelerated the loss of attractiveness of city centers as classic locations for clothing stores, for example, explained Creditreform. However, the flow of visitors to stationary German retail stores fell by almost a third between 2008 and 2014. “The decline in customer numbers runs parallel to the increasing importance of e-commerce.”
Recently, many bankruptcies of well-known companies, especially in the fashion retail sector, have made headlines: Peek & Cloppenburg, Gerry Weber, Reno, Peter Hahn, Salamander, Görtz and Signa Sports United. According to the Creditreform business climate index, the general economic situation in autumn 2023 was more critical than it has been since the peak of the Corona crisis. Recession, inflation and thus customer reluctance to buy have taken a toll on the industry. Many traditional stores are still lagging behind when it comes to expanding online sales.
In addition, textile and shoe retailers, for example, find it difficult to change their own store or business model – at a time when sales are often not enough to offset higher costs for energy, personnel or rent. Important expenses for the design of stores, for digitalization or sustainability, especially smaller retailers often have to postpone indefinitely, said Creditreform chief economist Patrik-Ludwig Hantzsch. “Investments are needed right now to prepare for the future.”
(Report by Klaus Lauer, edited by Myria Mildenberger; – If you have any questions, please contact our editorial team at [email protected] (for politics and economics) or [email protected] (for companies and markets). )