NEW
YORK, July 9, 2024 /PRNewswire/ -- The global
department stores market in Germany is estimated to grow by USD 2.05 billion from 2024 to 2028, at a CAGR of
almost 4.36%, according to Technavio. Rapid urbanization and rising
consumer spending are driving market growth, with a trend towards
increased demand for private-label brands. However, a slowdown in
sales in retail stores poses a challenge. Key market players
include Aldi Group, C&A Mode GmbH, GALERIA Karstadt Kaufhof
GmbH, Harrods Ltd., and Marks and Spencer Group plc.
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Forecast
period
|
2024-2028
|
Base Year
|
2023
|
Historic
Data
|
2018 - 2022
|
Segment
Covered
|
Product (Consumer
electronics and electricals, Home furniture and furnishings,
Cosmetic and fragrance, and Others), Type (Up-scale department
stores, Mid-range department stores, and Discount stores), and
Geography (Europe)
|
Region
Covered
|
Germany
|
Key companies
profiled
|
Aldi Group, ausberlin,
C and A Mode GmbH and Co KG, Claims Conference, East Side Mall,
elbstolz, Engelhorn, Fast Retailing Co. Ltd., Fenwick, GALERIA
Karstadt Kaufhof GmbH, Harrods Ltd., Kaufhaus Ahrens GmbH and Co.
KG, Ludwig Beck am Rathauseck Txtlhs FldmrAG, Manufactum GmbH,
Marks and Spencer Group plc, Modehaus Garhammer GmbH, Muller
Handels GmbH and Co. KG, SCHMIDT ARKADEN GmbH and Co. KG, The
KaDeWe Group GmbH, and Werbeverein Schadow Arkaden eV
|
Key Market Trends Fueling Growth
In 2023, the German department store market experienced growth
in private-label grocery and apparel products. A select few
retailers dominate the German retail sector, yet they continue to
expand their private-label product lines. Popular private-label
grocery items, including soft drinks, frozen and refrigerated
foods, alcohol, snacks, confectionery, meat, dairy, and sausages,
have seen a rise in demand. Private-label brands offer these
products at competitive prices, fueling their popularity among
retailers. Changing consumer expectations call for premium products
at affordable prices, leading to the emergence of private-label
brands. The increasing demand for private-label brands is
propelling the expansion of discount department stores and
supermarkets in Germany. Thus, the
growing preference for private-label brands is anticipated to
present growth prospects for discount department stores,
contributing to market expansion during the forecast
period.
Department stores in Germany
cater to various consumer needs, offering a wide range of products
from Apparel and Accessories, FMCG, Hardline, and Softline. Brands,
both branded and unbranded, dominate the market, with an increasing
trend towards private-label brands. Fashion trends and lifestyle
changes influence consumer preferences. Retail landscape is
evolving with AI and biometrics enhancing shopping experiences.
Education levels and standard of living impact consumer behavior.
Festive seasons boost sales in Men's wear, Women's wear, and
Accessories. Household furnishing, including Designer furniture, is
a growing sector. Retailers face operational costs pressure,
leading to innovation in areas like Online retailing and
Brick-and-mortar stores. Consumer packaged goods see shifts in
Packaging formats, with Premium and Innovative packaging gaining
popularity. Sustainable packaging is a key trend. The retail
organization adapts to consumer convenience, with Fashion,
Hardline, and Softline offerings catering to diverse demographics.
Lifestyle changes influence product ranges. AI and biometrics are
transforming retailing, while shopping malls remain popular
destinations. Festive seasons bring unique shopping
experiences.
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Market Challenges
- The department store market in Germany has faced a significant decline in
sales over the past few years. Traditional retail stores selling
items such as clothing, electronics, bags, toys, and sports goods
have experienced a downturn due to increasing competition from
shopping malls and e-commerce websites. In March 2023, retail sales in Germany decreased by 6.5% compared to the
previous year. Moreover, retail sales volumes dropped 8.8% in
June 2022. Consequently, some
department stores in the country have closed or filed for
bankruptcy. Online sales for these stores have shown substantial
growth in the last three years, indicating a shift in consumer
behavior. The department stores market in Germany is expected to experience slower
growth during the forecast period due to these trends.
- The German Department Stores Market faces several challenges.
Education levels and standard of living influence consumer
purchasing power. Shoppers prefer shopping malls for convenience,
but brick-and-mortar retailers face high operational costs.
Private-label brands and consumer packaged goods dominate, with
varying packaging formats from premium to sustainable. Innovative
and automated payments enhance the shopping experience. Online
retailing and e-commerce are growing, but festive seasons and
lifestyle preferences keep drawing shoppers to department stores.
Retailers must adapt to consumer preferences for men's wear,
women's wear, accessories, household furnishings, hardline and
softline goods. Transportation and retail organization are crucial
for effective retailing. Management must navigate control
structures, discounted rates, and AI and biometrics to stay
competitive. Clothing stores and food courts add to the department
store experience.
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challenges - Download a Sample Report
Segment Overview
This department stores market in Germany report extensively covers market
segmentation by
- Product
- 1.1 Consumer electronics and electricals
- 1.2 Home furniture and furnishings
- 1.3 Cosmetic and fragrance
- 1.4 Others
- Type
- 2.1 Up-scale department stores
- 2.2 Mid-range department stores
- 2.3 Discount stores
- Geography
1.1 Consumer electronics and electricals- In
the German department store market, consumer electronics and
electricals are popular product categories with significant demand.
Products such as smartphones, tablets, televisions, air
conditioners, refrigerators, and kitchen appliances are frequently
purchased. The interest in wearable electronics, including fashion
electronics and activity trackers, is growing. However, the rise of
consumer electronic sales on e-commerce platforms has negatively
affected department store sales. Retailers attempt to counteract
this trend by matching prices, reducing online-offline price
discrepancies, and launching online stores. However, department
stores have seen a substantial decline in revenue from consumer
electronics and electricals sales. Additionally, supermarkets and
specialty stores have gained market share, with Media Markt Saturn
Retail Group being a major player. This shift in consumer behavior
has led to moderate growth expectations for the department store
segment in the forecast period.
For more information on market segmentation with geographical
analysis including forecast (2024-2028) and historic data (2018 -
2022) - Download a Sample Report
Research Analysis
The Department Stores Market in Germany is a significant sector of the retail
industry, offering a wide range of goods under one roof. These
stores typically include sections for Clothing Stores, Food Courts,
and Hardline and Softline products. Transportation is essential for
the smooth functioning of department stores, ensuring the timely
delivery of goods from suppliers. Automated Payments have become
increasingly popular, providing a convenient shopping experience
for shoppers. Retail Sales in department stores have been on the
rise, driven by the purchasing power of consumers and the appeal of
one-stop shopping. Retailers manage these stores through a control
structure, overseeing the sale of Apparel and Accessories, FMCG,
and Household Furnishing, among other goods. Discounted rates and
license agreements are common strategies used to attract shoppers.
Men's wear, Women's wear, and Accessories are popular categories,
with Hardline and softline products catering to various consumer
needs. E-Commerce is also a growing trend, with many department
stores offering online shopping options. Retailing is a dynamic
industry, continually adapting to changing consumer preferences and
market trends.
Market Research Overview
The Department Stores Market in Germany is a significant sector of the retail
industry, offering a wide range of goods under one roof. This
market includes Transportation services, Clothing Stores, Food
Courts, and more. Automated Payments have become increasingly
popular for seamless transactions. E-Commerce is also a growing
trend, with retailers adapting to online retailing. Retail Sales
continue to rise, driven by the purchasing power of shoppers.
Department stores offer a variety of goods, from Apparel and
Accessories to FMCG, Hardline, and Softline. Brands, both branded
and unbranded, are a key focus, as are Designer furniture and
Fashion trends. The retail landscape is constantly evolving,
influenced by lifestyle changes, AI, and biometrics. Management of
department stores involves a complex control structure, with
operational costs a significant consideration. Convenience and
Retail organization are crucial factors in attracting shoppers. The
market caters to various consumer segments, with Education levels
and Standard of living playing a role in purchasing power. Shopping
malls and Private-label brands are also part of the department
store ecosystem. Consumer packaged goods come in various Packaging
formats, with Premium and Innovative packaging gaining popularity.
Sustainable packaging is a growing trend, reflecting consumers'
increasing focus on the environment. Festive seasons and Lifestyle
events drive sales, with Men's wear, Women's wear, and Accessories
being popular categories. Brick-and-mortar retailers continue to
compete with online retailers, offering Discounted rates and a more
tactile shopping experience. AI and biometrics are being integrated
into retail operations to enhance the shopping experience.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Product
-
- Consumer Electronics And Electricals
- Home Furniture And Furnishings
- Cosmetic And Fragrance
- Others
- Type
-
- Up-scale Department Stores
- Mid-range Department Stores
- Discount Stores
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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