Anyone walking through German city centers these days might think it’s already midsummer. Special offers and discounts far and wide. The legally required summer sales have not existed for years. Retailers are now holding a voluntary sale – actually not until the end of July. “Unfortunately, there is now almost a constant loop when it comes to discounts. There are more and more of them,” says Rolf Pangels from the Textile Shoes and Leather Goods Trade Association.
According to surveys by the German Retail Association (HDE) and the Nuremberg Institute for Market Decisions, consumer sentiment has recently improved slightly, but the situation remains difficult. Many people shop very frugally. Whether it’s clothing, food or decoration: the main thing is that it’s cheap. Special offers are particularly popular.
Depending on the product category, up to 74 percent of purchasing decisions are influenced by discounts. This is shown by a study by the Boston Consulting Group (BCG). 1,800 people in Germany were surveyed representatively in April. The mood has therefore deteriorated further. 64 percent rate the economic situation negatively. Consumers are paying more attention to prices than they were a year ago. “Today, consumers are weighing up more about what they spend their money on,” says BCG consumer goods expert Karin von Funck. They compared more and questioned expenses more critically.
The most savings are made on clothing and catering
According to a representative Kantar survey, savings are mainly made on clothing, gastronomy as well as when going to the cinema, concerts and clubs. The institute surveyed 2,000 people between the ages of 18 and 64 on behalf of the Idealo portal. 62 percent are increasingly comparing prices from different providers. 56 percent pay more attention to special offers. The most common savings are for vacations and trips or to build up financial reserves (41 percent each).
The financial pressure is great. According to the survey, 81 percent have to pay more attention to how much they spend. Two thirds are worried that they will no longer be able to make ends meet. 44 percent consume less than in the previous year, only 6 percent more. They usually cite rising consumer prices and political and economic uncertainties as reasons.
In the “worry ranking” by market researcher YouGov, financial and economic concerns have moved up to first place – ahead of immigration and physical health. YouGov expert Petra Süptitz sees this as a reaction to a permanently increased cost awareness.
Customers are increasingly turning to special offers for everyday products such as groceries. According to YouGov, this recently accounted for almost a quarter of sales – significantly more than four years ago. Retailers’ cheaper own brands are also increasingly in demand. Many customers are unsure what additional burdens they will face, says Süptitz. According to the Federal Statistical Office, food prices have already risen by an average of 37 percent since 2020.
“Most people save because of a need for security”
According to Postbank, Germany is and remains a country of savers. However, many doubted whether they were putting enough money aside. “Most people save out of a need for security. If, despite their efforts to save, they have the feeling that they can hardly achieve their goal, this leads to uncertainty and frustration,” says Postbank investment strategist Ulrich Stephan. Continued cost pressure is damaging confidence in one’s own ability to take precautions.
Retailers are hurting by customers’ frugality. Companies are struggling with the flood of discounts. The lower the prices, the less they earn. “Anyone who constantly works with high discounts risks devaluing their brand and decreasing profitability,” says BCG expert von Funck. Wars, a weak economy and poor consumer sentiment put a strain on the industry, says HDE Managing Director Stefan Genth. “The calculations of small and medium-sized retailers in particular are under enormous pressure.”
Asian providers such as Temu and Shein, among others, can benefit. According to an evaluation by the research institute IW Consult on behalf of the HDE, Temu and Shein are causing significant harm to German retail. The industry loses sales of 2.5 billion euros every year.
One in six retailers sees their existence threatened
According to the retail research institute IFH Cologne, discounters also benefit from high price consciousness. Suppliers such as Action or Woolworth are therefore increasingly taking on the role of specialist retailers in many product groups – especially for do-it-yourself products (DIY), seasonal goods, decorative items, stationery and toys.
IFH trade expert Kai Hudetz sees a “loss of the middle”. The entry-level price segment as well as premium and luxury offers are winning, while medium price ranges are increasingly having difficulties.
According to the Ifo Institute’s economic survey, one in six retailers in Germany now fears for their existence, more than ever before. According to credit insurer Allianz Trade, the number of bankruptcies is at its highest level in ten years. The decorative retailer Depot and the hardware store chain Hellweg recently filed for bankruptcy again, and the specialty store chain Hammer closed all branches.
Second hand is booming
According to the Idealo survey, price is the most important purchase criterion, just ahead of quality. Consumer behavior sometimes puzzles experts. Many order from Temu and Shein despite concerns about product quality, according to a recent study by market research firm Appinio. It is said that the extreme price stimulus does not resolve existing concerns, but rather systematically eliminates them.
The second-hand market is also one of the winners. It is growing significantly faster than retail as a whole. In 2025, 10.5 billion euros were sold online with second-hand goods in Germany – 84 percent more than in 2019. According to YouGov, clothing, books, furniture and electronic devices such as smartphones and tablets are particularly popular.
“For many consumers, second-hand products are one thing above all: significantly cheaper than new goods,” says expert Hudetz. Secondhand has left its outdated image behind and is developing into a lifestyle topic. He expects the market to continue to grow in the future.