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Trade association calls for inner city summit to save retailers
The trade association warns of an impending ghost town crisis in Germany. Find out why 60,000 shops could close and how politicians want to intervene.
Trade association calls for inner city summit to save retailers
In view of increasing vacancies, increasing bankruptcies and a general slump in consumption, the German Trade Association (HDE) warns of the dangers of “ghost towns”. The President of the HDE, Alexander von Preen, emphasizes the consequences that the decline in retail can have on the economy, the population's sense of life and home, and society as a whole.
According to the HDE, the number of retail stores in Germany has fallen from 372,000 to 311,000 since 2015. A further 5,000 closures are expected next year. The recent bankruptcy of the Galeria Karstadt Kaufhof department store group has increased uncertainty in the industry. The new owners plan to take over at least 70 of the 92 branches. However, some cities may face the closure of the local Galeria branch, which could impact the environment and operations of other retailers.
In order to counteract the decline of many inner cities, the HDE is calling for better coordination and networking between the relevant actors. While the core responsibilities lie with the Federal Ministry of Construction, there are areas in which the Federal Ministry of Economics or Federal Transport could also become active. An annual summit with all stakeholders could help improve coordination. The HDE is also committed to setting up a city center academy in order to successfully convey measures to deal with the crisis.
A start-up offensive is also called for in order to see the vacancies as an opportunity. Founders should be encouraged to establish their own businesses in inner cities. A grant for founders over a period of up to 60 months as well as the work of settlement managers could help reduce vacancies and attract new businesses. The retail industry will come together this Tuesday and Wednesday in Berlin for its annual commercial real estate congress, at which the Federal Minister for Housing, Urban Development and Construction, Klara Geywitz (SPD), will also be present.