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German Retail Sentiment Plummets as Shops Struggle for Customers

Falling customer demand, rising operating costs, low‑price online competition, high insolvency levels are forcing trade groups to press for rapid policy relief.

Die Stimmung der Einzelhändler in Deutschland hat sich einer Umfrage zufolge verdüstert. Fast zwei Drittel gaben laut Handelsverband Deutschland an, dass sich ihre Geschäftslage im ersten Halbjahr im Vergleich zum Vorjahreszeitraum verschlechtert hat.
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Overview

  • The Handelsverband Deutschland (HDE) survey of 600 retailers, published Tuesday, found 63 percent said their situation worsened in the first half of 2026 and 42 percent rated their business as poor.
  • About 79 percent of respondents named weak consumer demand as their top problem and roughly 65 percent expect 2026 sales to be below 2025 levels.
  • The HDE kept its 2026 sales forecast at €697.4 billion, a nominal rise of 2 percent but only about 0.5 percent in real terms after inflation.
  • Online sales are driving growth with the HDE projecting real online expansion of roughly 3.5 percent in 2026, while brick‑and‑mortar revenues are expected to stagnate as low‑price platforms eat market share.
  • Industry groups warn insolvencies remain elevated after a 2025 peak and are urging policy moves such as protecting minijobs, capping non‑wage labour costs and loosening Sunday‑opening rules to stabilise stores.