Corona: how are stores surviving the lockdown??

Saxony on Monday already offered a taste of what all of Germany can expect starting Wednesday: closed stores, orphaned pedestrian zones. Silence in a time that would otherwise be characterized by hustle and bustle at Christmas markets, crowds in department stores and the scent of cinnamon in cafes distinguishes. After restaurants, retailers must also close.

But of the Saxon silence Was in many other places in Germany, where the Lockdown only begins on Wednesday, nothing to feel. Instead, some of the long Queues bookstores, fashion retailers and boutiques," Gent said. And merchants were also eager to get rid of their goods. Because the warehouses are still well filled.

Lockdown puts retailers in hopeless situation

"Especially in the area of Fashion the warehouses are still overflowing," Stefan Genth, chief executive of the German Retail Association (HDE), told our editorial team. At Christmas business an average of more than 15 million pairs of pants, shirts, shoes, belts and other garments cross the counter each day.

Genth warned that the lockdown would put many bricks-and-mortar retailers in a hopeless situation. "Since the closure is now already before the 24. December takes place, there will be a significant increase by the 10. January a huge mountain of 300 million pieces unsold fashion items pile up," said Genth. Per day, total retail sales break up to one billion euros in sales away.

Retail: Christmas business fails to materialize, drop in sales immense

In the inner-city retail sector alone, the Cologne Institute for Economic Research (IW Koln) puts the drop in sales in December at between 10.2 and 13.35 billion euros. "In optimistic scenario we are going from a decline in sales in the period leading up to the lockdown of 18 percent off, as reported by the trade association for the first two weeks of December," IW competition economist Christian Rusche told our editorial team.

In the pessimistic scenario, Rusche ames that the reduced number of passersby in the Shopping streets proportionally affected sales on the days still open. This decline in Customer frequency currently account for 47.4 percent. For January, the IW Cologne expects a loss of 5.7 billion euros for retailers in the optimistic scenario. In the pessimistic scenario it is 8.7 billion euros.

Corona lockdown: damage could be up to 22.05 billion euros

If things go badly, he says, the retail sector will lose a total of 22.05 billion euros in sales in December and January. This, however, is a "relatively extreme scenario", said Rusche. In the optimistic scenario, there would be a combined loss of 15.9 billion euros – excluding sales tax.

The IW sees the online giant Amazon as the clear winner of this development. At the same time, 40 percent of all stationary retailers in this country also have an Internet store, said Genth. Some stores also offer Pick-up models or delivery services to. "Retailers learned during the first lockdown how to keep in touch with their customers despite store closures," says HDE head.

Saving the city centers: collection also possible from retailers?

Via Social media, online platforms and online marketplaces, but also via deliveries by bicycle or the sale of Vouchers try many retailers, at least not to be completely forgotten. Genth hopes that ordering and collection options will remain permitted in the ordinances of the federal states. "Otherwise, many merchants will no longer have the opportunity to generate at least a little revenue."

Also the FDP speaks out in favor of collection services. The regulations should be "designed as unbureaucratic and simple as possible," said FDP Secretary General Volker Wissing our editorial office. He called for the promised aid programs to be disbursed quickly.

Trade association: Corona bridging aid not enough

Previously, the FDP had already Opening of the stores around the clock proposed to alleviate the customer rush. Federal Minister of Economics Peter Altmaier (CDU) appealed to the citizens to completely abstain from purchasing Christmas presents to do without and to give themselves vouchers instead.

HDE calls for better aid to prevent a Job cuts of an estimated 250.000 employees to prevent. But also to prevent insolvencies. Although the German government is flanking the economy with around eleven billion euros a month. But the planned bridging aids would not meet the needs of many retailers, criticized Genth.

The HDE is therefore in constant conversation with the ministries, how the funds could be distributed in such a way that they also arrived where they were needed, so Genth: "For December, it must furthermore already from Equal treatment reasons The fact that the December aid would also be used to help the retail trade, analogous to the."

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