Retailing in Germany, Market Shares, Summary and Forecasts to 2021
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 -
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