Germany is grappling with an uncertain economic environment that’s creating new dynamics in German retail trends. Inflation has impacted household budgets even as people are returning to the stores to find inspiration and the enjoyment of shopping together with friends and family. Curbside services and other conveniences borne from the pandemic are here to stay even while online shopping declines in popularity compared to previous years.
Even in this changing environment, German retail trends see the country’s retail industry is moving forward. Retailers are adopting new tactics to anticipate the shifting needs of their customers, including:
Rethinking their brick-and-mortar strategies
Experimenting with new store layouts
Adjusting product assortments
Enabling new technologies that encourage customer interaction
One thing is clear: German retail trends will continue to evolve as consumers make choices about how to spend in 2023. To help retailers navigate this changing environment, Mastercard and Retail Capital Partners (RCP), a leading retail strategy consulting firm, have partnered to provide relevant insights based on Mastercard’s proprietary data and RCP’s specific knowledge of the German retail market.
In this report, you can learn:
How the economy and consumers are shaping Germany’s retail industry in 2023
The leading trends to watch, from cost pressures and consumer restraint to the return to in-person shopping
How retailers are using all the tools at their disposal to make the best decisions in an uncertain economic environment
Trend #1: Inflation causes cost pressures and consumer restraint
A tense climate caused by global crises is accelerating overall consumer restraint and creating an increased need for retailers to respond to consumers’ higher price sensitivity. Retailers are experiencing increased cost pressure from suppliers and service providers, as well as in advertising expenses and cost of capital. As a result, there’s a need to optimize core business activities, from inventory management to marketing campaigns.
Trend #2: In-person shopping returns
Consumers are gravitating toward experiences, and one of them is in-person shopping. They are willing and able to experience in-person shopping again.
Trend #3: Rethinking retail stores and creating an omnichannel experience
Retailers in Germany and around the world are innovating their brick-and-mortar strategies towards profitability, customer engagement and other objectives. The times of static store layouts which are left standing for years to come have passed. Store remodelings -- and with that, data-driven store optimization -- are becoming a continuous task for retailers.
To learn more about German retail trends and more, download the report.
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