German retailers are losing billions annually to Chinese e-commerce giants Temu and Shein, according to a recent analysis that has significant implications for the sports retail sector. The study, conducted by IW Consult on behalf of the German Retail Federation (HDE), reveals that German retailers are missing out on €2.5 billion in annual sales due to consumers choosing these platforms over domestic retailers.
This figure represents only the direct impact on retail, with the total economic impact estimated to be double that amount when accounting for secondary effects such as reduced spending on rent, utilities, logistics, and wages. As Marco Trenz, an economist at the German Economic Institute, explained, every euro of retail sales generates approximately two euros in broader economic activity.
The analysis is based on a representative survey of 4,000 consumers aged 16 to 69 conducted in February 2025. The survey found that 51% of Temu and Shein users would have purchased the same items at the same price from other retailers if the Chinese platforms were not available, while 19% would have been willing to spend more money.
The impact extends beyond lost sales, with the analysis indicating that over 40,000 jobs have already been lost in Germany due to the rise of Temu and Shein, the majority in the retail sector. Trenz noted that without these platforms, a significant portion of purchases would shift to German retailers, requiring additional staff. Additional job losses would occur in supporting industries such as logistics and manufacturing.
According to the HDE, Temu and Shein ship approximately 460,000 packages daily to German consumers, highlighting the massive scale of their operations in the country.
The growing dominance of these platforms poses a particular threat to sports retailers, who compete directly with Temu and Shein for sales of athletic apparel, footwear, and equipment. As consumers increasingly turn to these low-cost alternatives, traditional sports retailers face mounting pressure on their margins and sales volumes.
For the sports retail sector specifically, the shift toward ultra-low-cost e-commerce presents challenges in maintaining profitability while competing against platforms that operate with significantly lower overhead costs. Sports retailers must now navigate a landscape where price sensitivity is heightened, and consumers have access to vast inventories of athletic goods at prices that often undercut traditional retail margins.
The analysis suggests that without intervention, the trend of consumers favoring Temu and Shein over domestic retailers is likely to continue, potentially leading to further job losses and economic disruption in the retail sector, including sports retail.
As the sports retail industry continues to adapt to changing consumer behaviors, understanding the economic impact of platforms like Temu and Shein becomes crucial for developing effective strategies to remain competitive in the evolving marketplace.
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