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Opportunities and threats for home and living sector:

Germany sees a surge in online retail

Germany's online retail sector is once again showing strong momentum, prompting the German Retail Association (HDE) to revise its 2025 forecast upwards. According to the HDE Online Monitor 2025, online sales are expected to grow by 4% this year compared to 2024, reaching €92.4 billion.

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'After several weaker years, online retail is once again the clear growth engine for retail in Germany. Despite the overall unsatisfactory consumer sentiment, online retailers are managing to achieve significantly better sales than in the previous year,' said Stephan Tromp, Deputy Managing Director of the HDE.

This rebound offers renewed prospects for furniture and interior brands expanding into e-commerce channels. Online platforms are proving indispensable: online marketplaces now account for 57% of total online sales in Germany, a figure that continues to rise. This format provides greater exposure for lifestyle and design-oriented retailers, particularly those aligning with digital-native shopping behaviours.

While the HDE highlighted that food and drug store segments showed online share growth of over 8% and 9% respectively in the past three years, the implications extend to all product categories experiencing increased digital footfall, including furnishings, décor, and home lifestyle goods.

Cross-border sales are also becoming more prominent. Foreign online retailers now represent around €8.9 billion in sales, or 10% of Germany's online volume. Fast-rising platforms like Temu and Shein alone account for €2.7 to €3.3 billion of that figure. For the interior sector, this influx of overseas offerings presents both a competitive challenge and a call to action.

'The high figures and the strong momentum make it clear that it is high time for politicians to ensure fair competitive conditions with suppliers from the Far East. Competition stimulates business, but this Wild West situation must end: Anyone offering goods in this country must adhere to all our rules. The current situation endangers domestic retailers and consumer safety,' Tromp added.

The HDE is calling on the German government and the EU Commission to implement "clear and unambiguous measures" to enforce regulatory standards equally for domestic and foreign sellers. For the interior industry, which is often held to strict EU safety and sustainability regulations, ensuring a level playing field is vital.

More information:
Handelsverband Deutschland (HDE)
www.einzelhandel.de

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