In 2017 and further on, the return of inflation and the slowing growth of real consumer spending suggest modest nominal retail sales growth in Germany.
German retailers have suffered a dramatic decline in profitability: from 7% in 2011 to 2.9% in 2016. At the same time, indebtedness is down -6pp compared to the previous year, reaching a yet significant 95%.
Discounters and online pure players are well placed to keep the growth momentum while the fashion and electronics sub-sectors face pressure.
retail-disrupted-pressure-and-potential-in-the-digital-age-germany-may2017.pdf