The business death in German inner cities is progressing. “The situation is dramatic,” says the general manager of the German Retail Association (HDE), Stefan Genth.
The end of Galeria Kaufhof is just one cautionary example of many.
New retail chains are coming into focus. Low-cost providers in particular see their chance. Online brand shops also want to gain a foothold in German inner cities.
The end of the shopping miles is approaching. German inner cities are with the closure big retail chains like Galeria Kaufhof and there is concern that inner cities will become deserted. “The situation is dramatic,” warned the chief executive of the German Retail Association (HDE), Stefan Genth, in a report by “business week“. But despite these bleak prospects, there are still chains that want to open thousands of new branches.
One example is the outdoor outfitter Globetrotter, which attracts customers in the West End of Bonn, among other places. The shop was furnished with used materials and is very popular. In addition to established companies, new players are also venturing into brick-and-mortar retail, including brand shops, online providers and high-growth retail chains.
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Also cheap providers like the Swedish one discounters Rusta and the Polish low-cost supplier Pepco see their chance in the current economic situation. According to the Wirtschaftswoche report, Rusta plans to open 13 branches in Germany by the end of the year. In the long term there should even be 500 branches. Pepco, one of the largest non-food discounters in Europe, plans to open 50 German branches by the end of the year and has the long-term goal of opening up to 2,000 branches throughout Germany. In times of high inflation and consumer pressure to save, they see an opportunity by offering products at low prices.
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