Retail sector in Germany hits record low as number of stores declines sharply
The number of retail stores in Germany has fallen to its lowest point since the country’s reunification and is projected by the German Retail Association (HDE) to dip below 300,000 by the end of 2026.
Since late 2015, the market has lost around 70,000 stores, with an average annual decline of about 10,000 shops. The current bankruptcy rate in retail remains the highest in a decade. Companies announcing store closures or network reductions include Eterna, Pieper, Görtz, Gerry Weber, Kik, Wormland, as well as the chains Depot and Kodi.
Yesterday, discount retailer Kik confirmed it is scaling back operations, closing approximately 300 stores across Europe. Many cities are already experiencing vacant retail spaces, with half of all retailers expecting further revenue declines over the next year.
The German Retail Association (HDE) is a leading industry body representing retail businesses nationwide, monitoring economic trends and market developments.
The overall situation illustrates a prolonged crisis in Germany’s retail sector, likely resulting in further store closures and structural market changes in the near future. Retailers must adapt and find ways to stabilize their business to avoid bankruptcy.
Looking ahead, continued contraction and restructuring of the retail network are expected, alongside growing importance of online commerce as a response to the challenges facing traditional retail.
