German retail fears the closure of 16,000 more shops due to pandemic

The German Retail Federation fears the pandemic will put another 16,000 shops out of business this year.

Inner-city retailers in particular will continue to suffer from the lingering effects of the pandemic in 2022, the association’s secretary general, Stefan Genth, warned in Berlin on Tuesday.

He said Germany’s so-called 2G regulation, under which only vaccinated and recovered people are allowed to shop in large parts of the retail sector, is particularly burdensome for retailers.

According to a recent survey of 1,300 retailers conducted by the association, 46% affected by the 2G regulation consider their business situation to be bad.

“This measure, which is useless in the fight against the pandemic, must finally be dropped nationwide,” Genth demanded.

In addition, many businesses were suffering from persistent supply problems. Sporting goods, electronics and household items were particularly affected.

If the effects of the pandemic subside quickly and measures such as 2G are withdrawn, the federation expects an overall increase in sales of 3 per cent for the sector this year despite the obstacles.

This would bring retail sales to more than €600 billion ($676 billion). However, most of the growth is once again likely to come from the online sector, for which the federation forecasts growth of 13.5%.

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