German Retail Faces Challenging 2025 Despite Modest Growth in 2024

Retailers report stagnant sales expectations as consumer uncertainty persists, while online shopping continues to grow with new demographics.

The Handelsverband Deutschland (HDE) predicts a real retail sales growth of just 0.5% for 2025, reflecting ongoing economic challenges.
A recent survey revealed that nearly half of German retailers expect declining sales this year, citing consumer uncertainty and high energy costs.
Despite a lackluster outlook, the 2024 holiday season exceeded expectations, with sales rising 1.5% year-over-year to €123.5 billion.
Online retail saw a 5% real growth in 2024, driven by increased spending from younger consumers and new engagement from older demographics.
Approximately 5,000 brick-and-mortar stores close annually, yet employment in the retail sector has slightly increased to 3.1 million workers.