German Retail Recovering

During the past year, German retail was able to expand in both nominal and real terms, according to the results of preliminary estimates by the German Federal Statistical Office. These present a nominal growth rate of between 2.5% an 2.7%, and a real one of between 1.3% and 1.6%. An increase is predicted for the current year as well.

The healthy overall growth of Germany's retail sector can also be attributed to the fact that a nominal decrease of 2.4% was recorded in 2009. Germany is generally considered a difficult retail market, where increases are difficult to achieve due to the high savings rate and the strong focus on low prices. Devel-opments during the past 4 years paint a similar picture: following a meagre increase of 1% in 2006, retail turnover fell by 1.6% in the following year, only to rise by a nominal 2.2% in 2008.

German consumers are characterised by their hybrid behaviour. Driving an expensive car and simultane-ously hunting for deals is a matter of course for the hybrid consumer. Thus, purchases are made both at Aldi and at expensive speciality shops. Demand for convenience is another characteristic typical of the German consumer. Fast but healthy food is becoming important for a growing number of Germans, due to rising numbers of single households, the increased employment of women and the disappearing boundaries between work and leisure. Private brands in retail are also a growing trend.