What: The German Trade Association (HDE) is urging the federal government to host a city center summit due to a significant decline in retail stores, which threatens to turn city centers into ghost towns.

Why it is important: The closure of thousands of retail stores could lead to widespread vacancies in city centers, drastically impacting local economies, community well-being, and societal structures. The potential transformation of bustling urban areas into ghost towns poses severe economic and social consequences, prompting urgent calls for strategic intervention.

Amid rising retail store closures and the threat of widespread vacancies, HDE President Alexander von Preen has emphasized the dire need for governmental action to address the crumbling state of city centers across Germany. Since 2015, the number of retail stores has decreased from 372,000 to 311,000, with an additional 5,000 closures anticipated next year. The situation has been exacerbated by the insolvency issues of major retailer Galeria Karstadt Kaufhof, which is expected to close several branches, further affecting nearby businesses. Von Preen suggests that a collaborative summit involving various governmental departments could foster better coordination and support for the struggling retail sector. Additionally, he advocates for initiatives like the city center academy and start-up incentives to revitalize these urban areas by promoting new business opportunities and sharing successful rejuvenation strategies. The retail industry's call to action highlights the urgency of implementing comprehensive measures to prevent the decline of city centers into ghost towns.

Thousands of business closures - retail warns of 'ghost towns'