Germany’s retail industry is expected to see a significant decline in the number of stores this year, with around 4,900 shop closures anticipated, according to a forecast by the German Retail Association (HDE). By the end of 2026, the total number of retail outlets is projected to fall to 296,600, down from 366,800 stores a decade ago, the association said on Monday.
“So this cannot and must not continue,” said HDE President Alexander von Preen, warning that the current trend is unsustainable. He added that many city centers are already visibly struggling with rising vacancy rates. “For ten years, we have been losing at least 4,500 shops in Germany every year or more,” von Preen explained. “The coronavirus years between 2020 and 2023 were particularly severe, when the figure sometimes rose to over 11,000.”
The situation is particularly serious for many medium-sized retailers, von Preen noted. He called on policymakers to take action, including reducing electricity taxes for all and introducing a cap of 40 percent on non-wage labor costs.
At the same time, the HDE president urged landlords to adapt to changing market conditions. Speaking ahead of the retail real estate congress on Tuesday and Wednesday in Berlin, von Preen emphasized the need for more flexible rental models. “They must, also in their own interest, be more willing to adopt turnover-based rents,” he said. “Vacancy benefits no one.”
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