Germany is the largest economy in Europe and weathered the global financial crisis better than many European countries, but it was still affected. However the economy has begun to improve and GDP is forecast to register steady growth to 2021. The overall population is growing slowly and is ageing; however, flexible labor migration rules are inviting more migrants into the country, which should compensate the population deficit for a short period. This augurs well for the retail sector as most migrants fall within the young family life stage who will spend a significant amount of their income on retail products - though they will be looking for value.
Consumers in Germany are actively engaged with online retailing and this channel is outperforming all others. Its share of total retail spending will grow from 8.3% to 12.5% by 2021, with some sectors taking an even greater share. Financial crisis impacted consumer confidence and spending in retail between 2011 and 2016 stood at CAGR2.1%. Increasing employment and rising wages will boost retailer spending over the next five years as the economy improves, and is forecast to grow at CAGR2.8%.
The clothing & footwear market will grow by a CAGR of 2.2% between 2016 and 2021. It will reach a value of EUR79.8bn by 2021 but all the growth in the market is coming from online, which will grow by CAGR10.3% and account for 30% of all sales by then.
Food and grocery is the largest sector, accounting for 39.1% of the total German retail market in 2016. The German shopper has been splitting spend between mass market food & grocery retailers and the discounters for years as they balance choice and quality against price.. However competition between the two is becoming more intense as discounters up their quality and mass market retailers lower prices.
The electricals market is outperforming overall retail in the five years to 2021. It is forecast to grow at a CAGR of 3.7% to reach EUR56.7 billion by 2021. Growth is being driven by innovations and new product launches in technology, a growing housing market and consumer confidence.
German’s spending on health beauty will grow by 2.0% CAGR to EUR56.79 billion by 2021. As the population ages, and all consumers become more health conscious, the health segment is growing much faster than beauty.
Growth in the home sectors is being driven by a more buoyant housing market and consumer confidence. Home is set to grow by 2.5% CAGR between 2016 and 2021, reaching EUR103 billion. The books, news and stationery market has been slowing since 2014 and will slow further over the next five years as the growth in this sector is undermined by online availability with wide offerings at lower prices.
The report "Retailing in Germany, Market Shares, Summary and Forecasts to 2021" provides data for historic and forecast retail sales, and also includes information on the business environment and country risk related to German retail environment. In addition, it analyzes the key consumer trends influencing German retail industry.
In particular, this report provides the following:
- In-depth analysis of the latest trends in consumer shopping, covering the factors driving shopping, consumer insights, market dynamics (covering 26 product categories),
- The report also details major retailers in each category group with their product proposition analysis and market positioning in 2016 along with recent key developments.
- Market insights based on consumer trends, changing economic and demographic factors, technology innovations, and other macroeconomic factors.
- Retail sales and the fastest-growing product categories, which include Clothing, Footwear, Books, News and Stationery, Electrical and Electronics, Food and Grocery, Health and Beauty, Furniture and Floor Coverings, Home and Garden Products, Music, Video and Entertainment Software, Sports and Leisure Equipment, Jewelry, Watches and Accessories, and Luggage and Leather Goods.
- Qualitative and quantitative insights of changing retail dynamics across various channels.
- German retail sector is forecast to grow at a CAGR of 2.8% between 2016 and 2021 to reach EUR598bn, increasing by EUR62.3bn.
- Online retail sales in the country have recorded strong growth at a CAGR of 13.7% between 2011-2016 and reached EUR44.1 billion in 2016.
- Clothing & footwear will underperform as new international entrants push down prices and increase competition
- Food and grocery is anticipated to grow at a CAGR of 2.0% during 2016-2021, from €209.8 billion in 2016 to €232 billion by 2021.
- Frequent visits for fresh food and top ups to drive sales at convenience stores
- Metro Group is the largest player in electicals market with an estimated market share of 12.0%
- Gain comprehensive knowledge on 26 product categories in German retail market and develop a competitive advantage around consumer behavior trends from the start of your supply chain
- Explore novel opportunities that will allow you to align your product offerings and strategies to meet demand by analyzing the vital economic and population trends, and key consumer and technology trends influencing the retail market
- Investigate current and forecast behavior trends in each category to identify the best opportunities to exploit
- Analyze the recommended actions to align your marketing strategies with the crucial trends influencing consumer behavior
- Understand the fastest-growing categories in the market with insights on the performance of individual product categories, across key channels from 2011, with forecasts until 2021
- Analysis of key international and domestic players operating in German retail market - including store counts and revenues that give you a competitive edge and identify opportunities to improve your market share
The State of the Nation
The State of Retail
Clothing & Footwear
Food & Grocery
Health & Beauty
- Peek & Cloppenburg
- Galeria Kaufhof
- Intersport and Bonita
- Media Markt
- Netto Marken
- Kaiser's Tengelmann