Berlin – Germany’s brick-and-mortar retail sector is facing a significant contraction, with the number of stores projected to fall below 300,000 this year. This marks a historic low, according to estimates from the German Retail Federation (HDE). The decline is expected to continue into 2026, with a further reduction of 4,900 stores anticipated, bringing the total to 296,600. These figures account for both store closures and new openings.
The number of retail establishments in Germany has not been this low since the reunification in 1990, a period that fundamentally reshaped the country’s economic landscape. Since then, tens of thousands of stores have closed nationwide. At the end of 2015, there were approximately 372,000 retail locations across Germany.
The situation has been particularly challenging since the onset of the COVID-19 pandemic, with temporary closures significantly impacting businesses. In 2021, the number of stores decreased by 11,500, followed by a further decline of 11,000 in 2022. Last year saw a reduction of 4,500, bringing the total to around 301,500. The rise of online commerce is too exerting considerable pressure on traditional retailers.
“This Cannot Continue”
Alexander von Preen, President of the HDE, warned of the consequences of this trend. “Many city centers are already visibly suffering from vacancies. This cannot and must not continue,” he stated. He indicated that there is no immediate prospect of improvement, particularly for medium-sized retailers. “The environment, with consumer sentiment stagnating for years, is difficult,” von Preen added, emphasizing the need for political intervention to reduce costs related to energy and employment.
The retail sector experienced a mixed year in 2025. While online retail saw a resurgence, increasing by 3.5 percent in real terms according to the HDE, sales in brick-and-mortar stores remained stagnant. A January survey of retailers conducted by the HDE revealed that only 14 percent of companies assessed their business situation as good. Half of the businesses surveyed anticipate declining sales in 2026, with consumer reluctance to spend remaining the primary concern.
Rising Number of Insolvencies
Insolvencies in the retail sector are at their highest level in a decade. Credit insurer Allianz Trade recorded 2,571 insolvencies in 2025, compared to 2,291 the previous year. Further increases are anticipated. Recent high-profile insolvencies include shoe retailer Görtz, fashion manufacturer Gerry Weber, and menswear retailer Wormland. Shirt manufacturer Eterna is set to cease operations this summer due to insolvency. Other companies, such as home décor retailer Depot and discounter Kodi, have significantly reduced their store networks.
The retail property sector is convening in Berlin this Tuesday and Wednesday for its annual Real Estate Congress. Sabine Poschmann, Parliamentary State Secretary in the Federal Ministry for Housing, Urban Development and Building, is among the expected guests.
The decline in retail isn’t simply a matter of numbers; it reflects a broader shift in consumer behavior and economic pressures. The German economy, like many others globally, is navigating a period of uncertainty, with inflation and geopolitical factors impacting spending habits. The HDE’s warnings underscore the urgency for policymakers to address the challenges facing the retail sector and support the vitality of city centers.
The situation is particularly acute for smaller, independent retailers who often lack the resources to compete with larger chains and online giants. These businesses are often the heart of local communities, providing unique products and personalized service. Their struggles highlight the need for targeted support measures to assist them adapt to the changing retail landscape.
The German retail landscape has undergone a dramatic transformation since reunification. The opening of borders and the integration of East German markets initially led to a period of growth, but the subsequent rise of e-commerce and changing consumer preferences have created new challenges. The current decline in store numbers is a stark reminder of the need for innovation and adaptation in the face of these challenges.
The HDE’s call for political action is likely to focus on measures to reduce the cost of doing business, such as lowering energy prices and easing the burden of employment regulations. However, addressing the underlying issues of consumer confidence and changing shopping habits will require a more comprehensive approach. This could include investments in infrastructure, support for local businesses, and initiatives to promote sustainable consumption.
As the retail sector continues to evolve, the future of shopping will be shaped by a combination of online and offline experiences. Retailers who can successfully integrate these two channels and offer customers a seamless and convenient shopping experience are likely to be the ones who thrive in the years to arrive.
The annual Real Estate Congress in Berlin will provide a platform for industry leaders and policymakers to discuss these challenges and explore potential solutions. The participation of Sabine Poschmann signals the government’s commitment to addressing the issues facing the retail sector and finding ways to support its long-term sustainability.
The next key checkpoint for the retail sector will be the release of first-quarter sales figures in the spring of 2026. These figures will provide a clearer picture of the current state of the industry and offer insights into the effectiveness of any measures taken to address the challenges it faces. Stay tuned to Archysport for ongoing coverage of this developing story.
What are your thoughts on the future of retail in Germany? Share your comments below and let us know what you think needs to be done to support local businesses.
