Business

The German Retail Sector Is Not Optimistic For 2021

Although the coronavirus epidemic has strained the economies of all countries in the world, businesses in Germany, Europe’s largest economy, are facing difficulties due to long-term restrictions.

German Trade Union (HDE) predicts that turnover will fall to 6 percent this year if businesses are allowed to open in April or May. If the opening takes place in March, sales are expected to reach 2020 levels.

HDE President Stephen Genth criticizes the government and local governments for opening the stores, provided the seven-day illness falls below 35 cases per 100,000 people. Genth said that was not very realistic and that 50,000 businesses would go bankrupt and 250,000 or more would lose their jobs.

Genth said the sector had no prospects and that more closures than opening strategies were on the agenda, and many retailers no longer knew what to do. Using the phrase “the situation is hopeless,” Gerth criticized the lack of state support.

Loss of turnover of 700 million euros per day

According to HDE, the daily turnover of retailers in Germany is 700 million euros. According to one HDE survey, more than half of retailers are affected by closure measures and are at risk of sinking. It is reported that clothing sellers are most affected by this situation.

Gent said citizens were allowed to shop and that it was considered safe, when the restrictions were eased, he said he did not understand that he could not spend 15 minutes in a shop despite sitting for an hour at the hairdresser.

Online shopping continues to rise

Online shopping is on the rise due to restrictions. The total volume of purchases from e-commerce sites is expected to increase by 13 percent to 81 billion euros in 2021. If the lifting of restrictions is postponed, this ratio could increase to 14-15 percent.

Online shopping is on the rise

HDE says it has been most affected by the closure of non-food shoes, clothing, watches and jewelry stores. HDE expects turnover in these areas to fall between 15 and 29 percent, depending on when the cuts end this year.

Restrictions have been extended

At a meeting yesterday, German Chancellor Angela Merkel and the prime ministers of the provincial governments decided to extend most of the restrictions against the epidemic until March 7 due to the spread of the mutated virus. The decision to open schools and kindergartens was given to the provincial governments. In order to ease the existing restrictions, the number of seven-day illness should be reduced to 35 per 100,000 people. So far, the number of seven-day events per 100,000 people in Germany has been accepted as a criterion for lifting restrictions.

Reuters / SSB, EC

© Deutsche Welle Turkish

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