The economic situation remains difficult for the German retail sector: customers are still holding back and there is still no sign of a sustained recovery in consumer sentiment. Meanwhile, the food retail sector (LEH) is growing slightly. Our experts analyse the reasons for this in the latest edition of the KPMG Retail Sales Monitor. Together with the EHI Retail Institute, we show what is shaping the market in our quarterly Retail Sales Monitor - from the general economic trend to sales in sub-segments and developments in mail order and online retail.
The focus in issue 3/2024 is on food retail, the most important sub-sector in Germany, accounting for around a third of total retail sales. Core findings of our analysis in a compact overview:
- In May 2024, food and non-food retailers showed contrasting trends compared to the same month last year: food retailers' sales rose slightly, while non-food retailers saw a decline in sales. The reason for the increase in food retail: falling inflation rates for food.
- It is noticeable that discounters made significant adjustments to their product range and market presence in the previous year: The average number of items was increased and product ranges were expanded to include regional and organic items as well as branded products.
- Private labels were able to increase their popularity, while manufacturer brands lost market share.
- A look at longer-term trend lines shows that the number of grocery shops is decreasing: Between 2019 and 2023, the number fell by 1.5 per cent from 37,418 to 36,858. Hypermarkets (5,000 square metres or more) recorded the sharpest percentage decline.
- The number of small shops has halved since 2006. The main reasons for the slump: unfavourable cost structures and delivery conditions. Meanwhile, the number of discount stores has remained stable - and in the case of supermarkets, there has been a significant increase in larger shops and a slight decrease in smaller ones.
As usual, the KPMG Retail Sales Monitor provides a detailed overview of all key figures in the sector.
Stephan Fetsch
Partner, Deal Advisory, EMA and German Head of Retail & Consumer Goods
KPMG AG Wirtschaftsprüfungsgesellschaft
