Thousands of German stores on brink of closure | Print Version

Over 15,000 German stores are facing bankruptcy due to soaring energy costs, Der Spiegel reported on Friday, citing the German Retail Association (HDE).

The group said the rise in energy costs, which have spiked by 147% on average since the beginning of the year, is preventing retailers from making a profit. The share of electricity costs in sales volumes for retailers has already reached almost 3% on average and many in the industry expect this figure to rise to as high as 5% in 2023.


According to HDE President Josef Sanktjohanser and Managing Director Stefan Genth, the returns generated in many retail sectors are already extremely low today. In the case of clothing, the operating profit as a percentage of sales is 2.1%, while in the case of shoes it is currently negative at -1.2%. Even in the food segment, it is only 2-4%.


daily-sun Thousands of German stores on brink of closure | Print Version