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The department stores market size in Germany is poised to grow by USD 2.06 billion and accelerate at a CAGR of 4.36% between 2023 and 2028. The market is experiencing significant growth, driven by several key factors. Urbanization, with its population density and increased consumer spending, presents a fertile ground for the expansion of department stores. These retail establishments, which offer a wide range of merchandise under one roof, are strategically located in favorable micro-locations to maximize customer access. Furthermore, department stores are positioning themselves as high-end retail destinations, catering to consumers seeking a premium shopping experience with extensive product assortments. This strategic positioning, coupled with the convenience and efficiency of one-stop shopping, is contributing to the market's robust growth.
Department Stores Market in Germany market size, Request for Free Report Sample
The market continues to evolve with advancements in automated payments and e-commerce, offering shoppers a seamless experience across clothing stores, food courts, and retail sales environments. These stores cater to diverse consumer needs in apparel and accessories, household furnishings, and FMCG, leveraging discounted rates to enhance purchasing power. Retailers manage operations through efficient control structures and management practices, optimizing goods distribution in both hardline and softline categories. The global department stores market adapts to changing consumer preferences, integrating retail organization strategies to maximize retail sales in men's wear, women's wear, and accessories segments. As digital licenses and automated payments streamline transactions, department stores enhance their retailing capabilities to meet modern consumer demands effectively.
Rapid urbanization and rising consumer spending are notably driving the market growth. The population density of Germany varies greatly. Berlin, Hamburg, and Bremen are the most densely populated cities at more than 3,500, 2,000, and 1,500 persons per sq km, respectively. More than 75% of Germany's population resides in urban areas, with the highest concentration in Berlin and Hamburg. Over the years, the country's rapid urbanization has created high-growth opportunities for department stores. Besides, high employment rates, escalated immigration, and improved wages in the country boosted consumer spending during 2021-2022.
For example, in 2021, consumer spending in private households amounted to almost USD 1.86 trillion. In 2022, the country's population purchased a variety of products online, with the leading categories being clothing and shoes, followed by books, music, and games. All of this can be grouped under the media category. Hence, these factors are expected to drive market growth during the market forecasting period.
The increase in demand for private-label brands is one of the key trends in the market. In Germany, private-label grocery and apparel products witnessed growth in 2022. Although the retail market in Germany is dominated by a few retailers, they have a robust and growing private-label product line. In the country, popular private groceries, including soft drinks, frozen and refrigerated foods, alcohol, snacks, and confectionery items, among others, have witnessed an escalated demand.
Moreover, the private-label brands offer a majority of these products at low prices. This factor is boosting the demand for private-label products from retail outlets across the country. Changing consumer expectations have made the provision of premium products are reasonable prices necessary, driving the launch of private-label brands. This, in turn, is boosting the growth of discount department stores and supermarkets in the country. Hence, these factors are expected to contribute to the market growth during the market forecast period.
The slowdown in sales in retail stores may impede the market growth. In recent years, the sales of retail goods, including clothes and apparel, electronic products, bags, toys, and other such products through department stores have witnessed a sharp decrease around the world. For instance, in Germany, certain department stores have either shut down their operations or filed for bankruptcy. This can be majorly attributed to the changing preference of buyers toward shopping malls and e-commerce websites.
For instance, in March 2023, in Germany, real retail sales decreased by 6.5% compared to the same month last year, mainly due to the growth in the number of malls and large departmental stores in the region. Besides, in the last three years, the online sales of these department stores have grown significantly. In June 2022, retail sales volumes declined 8.8% compared to the same month last year, as per Destatis, which is the German national statistics office. Hence, these factors are expected to restrain the department stores market in Germany during the market growth and forecasting period.
The data presented is comprehensive, reliable, and a result of extensive research - both primary and secondary. The market report provides a complete competitive landscape and an in-depth vendor selection methodology and analysis using qualitative and quantitative research to forecast accurate market growth.
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The market share growth by the consumer electronics and electricals segment will be significant during the market research and growth period. Some of the products with the highest demand in this segment include smartphones, tablets, televisions, air conditioners, and refrigerators, among others. Besides, there is a growing demand for wearable electronics. These include fashion electronics and activity trackers (including smartwatches from Apple and Samsung).
The consumer electronics and electricals segment was valued at USD 2.70 billion in 2018. Moreover, the increasing sales of consumer electronics and electrical items from supermarkets and specialty stores have also adversely impacted sales in department stores. Low-price discount stores and traditional supermarkets have dominated the retail sales of consumer electronics and electrical products.
In 2022, Media Market Saturn Retail Group, a specialty store, was one of the biggest electronic retailers in Germany. The increasing preference for specialty stores and supermarkets for the purchase of electronic products has drastically impacted sales in department stores. Therefore, the segment is expected to witness slow growth during the market growth analysis period.
Aldi Group - The company offers department stores such as grocery stores. It also offers products such as snacks, breakfasts, and baby items.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
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The department store sector is adapting to modern transportation trends and evolving retail landscape dynamics. These stores maintain rigorous control structures to manage operations, offering a blend of branded, unbranded, and designer furniture alongside home décor items that reflect current fashion trends and consumer lifestyle changes. Integration of AI and biometrics enhances customer experiences, catering to diverse education levels and standard of living expectations. Department stores innovate in packaging formats, emphasizing premium and sustainable packaging for consumer packaged goods. Amidst rising operational costs, both online retailing and brick-and-mortar retailers navigate challenges, especially during festive seasons when demand peaks for household furnishings and lifestyle products. As technology continues to shape the market, AI and biometrics are poised to redefine how department stores interact with and serve their customers.
Department Stores Market In Germany Scope |
|
Report Coverage |
Details |
Page number |
133 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.36% |
Market growth 2024-2028 |
USD 2.06 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.11 |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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 |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Type
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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