What: German department stores have experienced a significant 34.8% drop in sales over the past two decades.

Why it is important: This stark decline contrasts with the overall growth in stationary retail and the explosive expansion of online retail, highlighting the urgent need for department stores to innovate and adapt to changing consumer behaviors and the competitive landscape. The sector's challenges are part of a broader retail transformation influenced by digitalization and changing shopping preferences.

Germany's department stores have faced a prolonged crisis, with a substantial 34.8% decrease in real-term sales from 2003 to 2023, according to the Federal Statistical Office (Destatis). This period saw traditional stationary retail achieve an 11.3% sales growth, while mail order and online retail surged by 170.1%. Although there was a brief recovery in 2022 with a 13.1% sales increase, 2023 witnessed a further 3.9% decline. The sector has also seen a significant reduction in personnel by 21.7% over the same timeframe, despite recent slight increases in employment numbers. Contrary to department stores, certain retail sectors like shoes, leather goods, and consumer electronics have seen substantial growth, with consumer electronics sales rising by 175.7% since 2003. This data underscores the shifting dynamics within the retail industry, where department stores, once central to city center shopping, now struggle to maintain their relevance against more resilient and growing retail segments.

German department store sales have fallen by 34.8% in real terms over the past 20 years