Retail in 2024: The big picture
The local economy faced a challenging period in 2024, marking the second consecutive year of contraction, leading to low consumer confidence. As a result, retail in Germany experienced its lowest growth rate of the review period in 2024.
Similar growth rates for discounters and supermarkets, while interest in organic food and drinks continues to rise
As Germany’s economy contracted in 2024 for a second consecutive year and consumer confidence remained at a low level, price-sensitive consumers turned to discounters for promotions and private label options, in addition to visiting several chains to obtain the lowest prices for groceries. Value sales via supermarkets increased at a similar rate to discounters in 2024, in a sharp contrast with 2023, when the latter was a more dynamic performer.
Enhancing retail success through omnichannel integration
One of the key contributing elements to the success of modern retail is the continued investment in omnichannel strategies. These strategies have proven to be highly beneficial for both physical retail stores and their online counterparts.
What next for retail?
Retail in Germany is expected to experience steady, relatively healthy growth over the forecast period. Unsurprisingly, retail e-commerce is anticipated to outperform retail offline, driven by emerging low-priced focused pure platforms such as Shein and Temu Marketplace, although they may face stricter regulations over the forecast period.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in Germany with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in Germany, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in Germany report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Germany?
- Which are the leading retailers in Retail in Germany?
- How are products distributed in Retail in Germany?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Germany?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Germany
Retail in 2024: The big picture
Similar growth rates for discounters and supermarkets, while interest in organic food and drinks continues to rise
Enhancing retail success through omnichannel integration
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Christmas
Summer Sales
DISCLAIMER
Convenience Retailers in Germany
KEY DATA FINDINGS
Slowdown due to return to normality, while rising number of rail journeys boosts convenience stores
Shell & DEA remains largest player but Rewe Markt gains further ground
Forecourt retailers dominate but convenience stores innovate
Challenges will force convenience retailers to adapt store format for greater differentiation
Operational shifts likely to give greater prominence to major grocery retailers
Switch to electric cars will force forecourt retailers to rethink current business model
Supermarkets in Germany
KEY DATA FINDINGS
Supermarkets adjust strategies by responding to price challenges from discounters
Two dominant players focus on strengthening distinct competitive advantages
Loyalty scheme competition intensifies as Payback partner changes
Competing with discounters through premium products including organic, vegan food and local sourcing
Adapting price positioning to macroeconomic conditions could boost consumer loyalty
Two largest players set to develop e-commerce activities
Hypermarkets in Germany
KEY DATA FINDINGS
Closure of last Mein Real outlets adds to long-term challenges for hypermarkets
Kaufland’s dominance unchallenged despite gains by competitors
Competitive pricing and premium positioning boost competitiveness of Kaufland’s private label
Channel saturation but smaller hypermarkets offer some growth opportunities
Omnichannel services to gain a competitive edge over pure-play e-commerce
Local sourcing set to become key differentiator to competing with smaller store formats
Discounters in Germany
KEY DATA FINDINGS
Discounters continues to expand extensive private label offer to outperform grocery retailers
Competitive landscape largely unchanged in a concentrated channel
Challenges in non-grocery offer forces focus on selected categories
Lack of expansion opportunities will encourage network optimisation and push into new types of store locations
Tentative expansion in online grocery delivery and expansion of digital services
Natural and organic food expected to play more prominent role
Small Local Grocers in Germany
KEY DATA FINDINGS
Stagnant sales as channel suffers from higher prices compared to other grocery formats
Fragmented channel dominated by independents, but several chains lead
Greater focus on unique services to retain customer base
Decline in outlet numbers and intense price competition set to impact future growth
Reliance on nicotine and tobacco products likely to be reduced
More services and differentiated product offering may help offset main challenges
General Merchandise Stores in Germany
KEY DATA FINDINGS
Variety stores continues on upwards growth trajectory
Galeria continues to lose share while main competitors make gains
Department store chain Galeria focuses on path to profitability to remain afloat
Variety stores set to record solid performance despite slowdown in growth
No short-term relief for department stores due to significant challenges
Closer integration of e-commerce with store-based activities expected
Apparel and Footwear Specialists in Germany
KEY DATA FINDINGS
Offline stores face decline amid cost pressures and shifting consumer preferences
Zara and Takko perform well by adapting to consumer trends and economic shifts
E-commerce’s strength and the struggles of mid-market players
Future challenges amid economic pressures and shifting consumer habits
Esprit's exit from local market set to reshape mid-market fashion
Innovation and social commerce set to influence future strategies of apparel and footwear specialists
Appliances and Electronics Specialists in Germany
KEY DATA FINDINGS
E-commerce growth drives decline of store sales and function shift of outlets
Media-Saturn-Holding GmbH strengthens leadership, with low number of smaller brands growing
Brand success heavily depends on in-store consumer experience
Continual sales decline due to further growth for appliances and electronics e-commerce
Innovations in delivery will shape market dynamics
Right to Repair will increase importance of repair services in appliances and electronics specialists
Home Products Specialists in Germany
KEY DATA FINDINGS
Home improvement and gardening stores suffer from poor weather conditions
Homewares and home furnishings stores faces further challenges
Pet shops and superstores remains strongest performer overall
Number of outlets set to further fall, but value decline will start to ease
Sustainability versus acquisition for homewares and home furnishing stores
Facilitating purchases and developing stores to remain key strategies
Health and Beauty Specialists in Germany
KEY DATA FINDINGS
Sales of beauty specialists continue to recover in 2024
Health concerns support sales of pharmacies and optical goods stores
Wide price range benefits health and personal care stores
Positive outlook for health and beauty specialists in Germany
Challenges in the competitive landscape of pharmacies
Differentiation and loyalty set to become increasingly important
Vending in Germany
KEY DATA FINDINGS
Tobacco vending decline undermines channel’s performance
Tobaccoland consolidates its overall lead in 2024
Broader food assortment to encompass greater variety of snacking options
Healthier snacking options and alternative nicotine products set to become more widely available
Consumer electronics and other non-food products offer opportunities for impulse purchases
“Smarter” vending concepts may help offset competition from convenience retailers
Direct Selling in Germany
KEY DATA FINDINGS
Direct selling sales approach stagnation in Germany
Major exit illustrates shift away from direct selling towards retail e-commerce
Health and beauty products remain a pillar of direct selling model in Germany
Stagnation for direct selling as competition from retail e-commerce intensifies
Embracing the digital aspects will be crucial to survival
More consolidated competitive landscape ahead likely
Retail E-Commerce in Germany
KEY DATA FINDINGS
Retail e-commerce benefits from advanced technologies
Rising competition within retail e-commerce landscape: Exits and entrants
Convenience and price orientation remain key for retail e-commerce
Further growth expected for retail e-commerce in Germany
Highlighting unique value to compete with budget brands
Facilitating online sales with even greater convenience
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Retail research and analysis database.
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