Retail Bulletin: Germany - Discounters set to claim half of German grocery sales
Germany - Discounters set to claim half of German grocery sales
A combination of the 2007 VAT hike and the discounter boom that has spread like wildfire from grocery to other sectors is severely impacting Germanys retailing landscape, reveals a new report by Verdict Research. For the first time since 2002 the sector contracted, posting a decline of 0.9%. With a current value of 354bn, the overall retail market in Germany has receded back to what it was in 2005 meaning expenditure has been similar to that seen at the tail end of the last recession in the country. As a direct result of extremely tough trading conditions the wheels of the consolidation bandwagon have begun to turn and looking ahead Verdict Research expects more retailers to jump on.
