Despite the currently rather gloomy situation in the retail sector in many places, the German Retail Association (HDE) is sticking to its sales forecast for 2024. According to a recent HDE survey of 800 retail companies, 42 percent expect stagnating sales in the second half of the year and 36 percent expect declining sales compared to the same period last year. In view of further business closures, the retail association warns of the further desolation of city centres. At the same time, the association emphasizes the high social importance of the industry and its great commitment to sports clubs, city festivals and many other social causes.
The weak development of private consumption in the first months of the year leaves the retail sector with little scope for greater sales growth. In the first four months, sales were below the HDE forecast for the year as a whole. However, the HDE expects a significant revival in consumption over the course of the year and is therefore sticking to its forecast for a nominal increase in sales of 3.5 percent compared to the previous year. A current HDE survey of 800 retail companies shows that, in line with the difficult conditions, almost half of the industry expects sales to be below the previous year's level.
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Given the often challenging situation, HDE estimates that 5,000 stores will close their doors forever this year. 'We must not get used to this negative development, because it will result in entire city centres becoming deserted,' says HDE President Alexander von Preen. A look at the industry's social commitment shows how important it is for society as a whole that retail companies do not disappear from the market en masse.
Von Preen continues, 'In order to achieve a real revitalization of the inner cities, more investment is needed in new shops and the modernization of existing stores. A special program for depreciation of investments in inner cities can provide a decisive boost for the future of city centers.' There is already very good experience in this area with an investment program in the early 1990s. With a specific area demarcation, cities could direct investments to the right locations and provide companies with the appropriate incentives for investment. This would not only serve to preserve the multifunctional inner cities, but would also secure jobs at the same time.
More information:
HDE
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