Nevertheless, sales in the stationary retail sector as a whole rose by 11.3 percent. Meanwhile, mail order and online retail sectors in the Europe's largest economy have experienced a remarkable surge, with sales almost tripling, according to the figures.
The country's large department stores "functioned as a central component of city center shopping area and as an important attraction for consumers in stationary retail," Destatis said. Unlike most other retail sectors, however, they saw a "long-lasting negative sales trend."
Although department stores in Germany recovered from the COVID-19 pandemic years, the downward trend was resumed in 2023 with a decline of 3.9 percent.
Numerous chains have filed for insolvency in recent years, including Galeria Karstadt Kaufhof, Europe's second-largest department store chain, which lodged its third insolvency application in three years in January.
With 40 store closures of Galeria Karstadt Kaufhof already decided after the last insolvency, the future of the remaining 92 stores remains uncertain, as the search for a new owner has begun.
Galeria is not the only department store chain threatened with closure. The German Retail Association (HDE) expects a total of around 5,000 stores to close in 2024. "This is bad news for the retail sector, but especially for city centers," said HDE managing director Stefan Genth.
"After all, for many people, the main reason for visiting a city center is to shop. If stores disappear, the entire city center suffers," Genth added.
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