TOM 03 2024

T
TOPS
M
OF THE MONTH
TOMO
RETAIL REAL ESTATE
TOPS
OF THE
MONTH
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
THE HOTTEST DEALS +++
INTERVIEWS +++ STATEMENTS
+++ PARTICULARS +++
ANALYSES +++ PROJECTS
presented by HI-HEUTE.DE
March 2024
Brick-and-mortar shoe retailers performed above average in the annual results.
Shoe trade doing pretty well
Sales up by almost 500 million euros
Despite some spectacular insolvencies,
retail sales of shoes
rose by around four percent
or 480 million euros to 11.6
billion euros in the previous
year, according to initial projections
by the BTE German
Textile, Footwear and Leather
Goods Retail Association.
„However, sales are still almost
1.5% below the pre-corona
level of 2019,“ says BTE
Managing Director Axel Augustin.
Last year, brick-and-mortar shoe
retailers in particular performed
above average. According
to BTE estimates, sales in shoe
stores rose by almost eight percent,
but are still around six percent
below 2019. „However, we
are observing major differences
across the retail sector depending
on location or business concept,“
says Augustin. „The spectrum
ranges from record sales to business
closures and insolvencies
due to the sharp rise in costs and
major asset losses during the enforced
coronavirus closures.“
170 retailers
closed for good
According to BTE estimates,
around 170 shoe retailers closed
their doors for good in 2023 -
partly due to insolvency, partly
voluntarily, for example due to
a lack of successors. Currently,
only around 2,600 bricks-andmortar
shoe specialists are likely
to still be active on the market.
According to sales tax statistics,
there were still 4640 companies
in 2013.
Brick-and-mortar shoe retailers
currently perceive increasing
bureaucracy as the biggest problem.
High cost increases rank second.
Other frequent complaints
include customers‘ reluctance to
buy, increasing competition with
their own suppliers, a shortage
of skilled workers and a loss of
attractiveness of their own location.
Online segment
loses share
Mail order and online retail lost
sales in the previous year. However,
due to the strong upturn in
the coronavirus years 2020 and
Symbolic image: Adobe Stock / Vadim
2021, BTE estimates that it is
around 40% higher than in 2019.
Augustin: „We assume that the
mail-order segment accounted
for just under a quarter of the
overall shoe market last year.“
Cautious
expectations
Shoe retailers‘ sales expectations
for 2024 are very cautious. According
to a recent BTE survey,
only a quarter of participants expect
a significant increase in sales
for the current year. A further
quarter see themselves at around
the same level as 2023, while just
under half fear losses of at least
one percent. „We must therefore
expect further business closures
in 2024,“ warns Augustin.

Page 2
In the 60th anniversary year
of the future Westfield Ruhr
Park in Bochum, Unibail-Rodamco-Westfield
(URW) is
crowning the success story of
one of the largest shopping and
leisure destinations in Germany:
Westfield Ruhr Park will
be only the third destination
in Germany to bear the internationally
renowned Westfield
brand name, alongside Westfield
Centro in Oberhausen
and Westfield Hamburg-Überseequartier.
With the new name goes a quality
concept from the lifestyle,
shopping, gastronomy and leisure
sectors. The renaming to
Westfield Ruhr Park will take
place on September 26, 2024
as part of a major event to mark
the 60th anniversary of the center,
which opened in 1964.
Westfield Ruhr Park will now
be one of the 40 Westfield flagship
destinations in the USA and
Europe. The combination of the
international reputation of the
Westfield brand and the local
tradition of the center in Bochum
should further increase
the attractiveness of the location
and at the same time give
NEWS
New brand identity as
Westfield Ruhr Park
URW Germany plans to rebrand the Bochum destination
The Bochum shopping destination will soon be known as Westfield
Ruhr Park.
Visualization: URW
the entire city of Bochum and
the surrounding region even
more appeal.
Andreas Hohlmann, Managing
Director Austria & Germany
at Unibail-Rodamco-Westfield,
says: „In the year of the 60th
anniversary of the future Westfield
Ruhr Park, we are sending
a clear signal and underlining
the future viability of the location.
Under the new brand
name Westfield Ruhr Park, the
already very successful destination
will become even more
attractive for international and
national brands and concepts in
future. In conjunction with the
rebranding, we will also work
consistently on the strategic
development of Westfield Ruhr
Park and position it even more
succinctly as a flagship destination
with an extraordinary mix
of retail and experience-oriented
gastronomy and entertainment
concepts.“
March 2024
Deutsche EuroShop
reports significant
growth for 2023
Shopping center investor Deutsche
EuroShop has now announced
its preliminary and as yet
unaudited results for the 2023
financial year. „We recorded
significant growth in 2023, both
operationally and in terms of
our investment portfolio. Customer
footfall and tenant sales
continued their recovery. Compared
to 2022, 5.7% more people
visited our shopping centers
and our tenants increased their
retail sales by 8.6%,“ explains
CEO Hans-Peter Kneip.
German fashion
industry with
double-digit sales
growth in 2023
German clothing manufacturers
achieved double-digit sales
growth of 10.8% and a turnover
of 6.8 billion euros in 2023. In
addition, the official figures
from the Federal Statistical Office
show a year-on-year increase
in the number of employees
of 3.8% to just under 20,000,
which the industry organization
GermanFashion Modeverband
Deutschland describes as „pleasing“.
In comparison, the number of
business premises remained stable
with a slight increase of 1.2
percent, whereby the statistics
refer to businesses with more
than 50 employees.
New offers and ideas for Boulevard Berlin
H&M comes to the shopping center with a home range
Boulevard Berlin will open in
2024 with new offerings, including
the arrival of H&M and
H&M Home. In addition to jewelry
and clothing, the fashion
brand will also offer decorative
items and home accessories
in an additional space in the
future.
In addition, the electronics store
Saturn has confirmed that it will
remain in Boulevard Berlin. The
Boulevard is also launching a
new marketing campaign for the
new year, in which the stylized
B in the logo plays an important
role.
The redesign measures at Boulevard
Berlin will continue in
Boulevard Berlin is changing its face.
2024. This will bring many positive
developments for the shopping
offer, which will be concentrated
on the two lower floors
in future. The sporting goods
manufacturer Nike and Paper
Photo: Boulevard Berlin
& Tea were already two new
additions to the store in 2023.
In 2024, H&M will not only
modernize its existing range in
Boulevard Berlin, but will also
significantly expand it. With the
opening of a new H&M Home
on 3000 square meters, the company
wants to ensure that customers
can store for decorative
and furnishing items. The store
will remain open throughout the
renovation.
Saturn already modernized its
5000 square meter space last
year and will remain a tenant of
Boulevard Berlin. The same applies
to the perfumery Douglas
and the shoe retailer Deichmann.
The latter is relocating from the
second floor to the first floor in a
much larger space. In addition, a
number of other innovations are
already in the starting blocks for
2024.

Page 3
TOP STATEMENT OF THE MONTH March 2024
TOP STATEMENT
March
„From the outset,
my role was that of
a restructurer and
liquidator, with the
clear aim of transferring
as many
Real stores and
their employees
as possible to the
new operators
and closing as few
stores as possible
in the end. On
the one hand, the
stores were to be
handed over to
Kaufland, Edeka,
Rewe etc., while
on the other hand
the active stores
had to continue
to generate good
sales and positive
contribution margins.
This project
is unique in the
history of European
retail.“
Bojan Lucer, last CEO of
Real, in an article in the
Immobilien Zeitung

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Page 5 ANALYSES March 2024
Insolvency trend in the
food service industry continues
Current analysis: the wave has only just begun
Between 2020 and 2023,
around 48,000 businesses in
the catering industry closed
across Germany. During this
period, 6,100 businesses went
out of business due to insolvency.
In 2023 alone, around
one in ten catering businesses
closed. This is according to an
analysis by Creditreform.
„The food service industry is
one of the main losers of the
crisis in recent years. The sector
is almost helplessly at the
mercy of rising costs due to
inflation. There are hardly any
alternatives. At the same time,
the necessary price increases are
driving customers away,“ says
Patrik-Ludwig Hantzsch, Head
of Creditreform Economic Research.
„The hospitality industry
had not yet recovered from
the coronavirus crisis when the
next blow came in the form of
inflation.“ Price-adjusted sales
and earnings in the hospitality
industry are currently still below
the 2019 level.
Many young
businesses affected
OPS F THE ONTH
In the previous year, one in ten catering businesses went out of business.
Symbolic image: Pixabay / Cindy Parks
THE HOT
INTERVIE
+++ PAR
ANALYSE
presente
Marc
Between 2022 and 2023, insolvencies
in the catering industry
rose by 27%, which is higher
than the average for the economy
as a whole. A deeper breakdown
reveals an even more differentiated
picture of insolvency
trends: the rise in insolvency
figures was above average in
the „caterers, food service providers“
sub-sector (up 67%). Insolvency
figures in this segment
are now higher than in 2019.
„Restaurants, catering, snack
bars“ (up 32%) also recorded a
massive increase recently. However,
the volume still remained
below the pre-corona level.
Insolvencies in the „Discotheques,
bars, other beverage outlets“
sector rose less sharply
(up 13%). Insolvencies in the
catering sector are primarily
concentrated in young companies
that were no more than five
years old (49% of all cases).
There was also a marked increase
in the number of cases among
these young catering businesses
in 2023 (up 30%). In addition,
micro-businesses with no or no
more than ten employees are often
affected (88% of cases).
Silent retirements
on the rise
„Our evaluations suggest that
the insolvency trend in the hospitality
industry will continue.
The wave has only just begun,“
emphasizes Hantzsch. He expects
insolvencies in the sector
to continue to rise. In this
respect, the pre-corona level is
likely to be reached again soon -
the number of insolvencies may
already exceed this in 2024. The
number of „other business closures“
is also likely to remain
at a high level. Due to the small
size and creditor structure - the
suppliers - in most cases there
will be „silent exits“ without extensive
insolvency proceedings.
„The overall economic conditions
are currently anything but
favorable for the hospitality
industry. The increase in VAT
for food at the beginning of the
year has certainly not helped to
ease the situation. The catering
industry in Germany is being
further thinned out,“ continues
Hantzsch. Government aid
has also played a major role in
survival during the lockdown,
preventing closures for the time
being.
Regional
differences
The susceptibility to insolvency
also varies from region to region.
The increase in insolvencies
in the catering sector was above
average in Schleswig-Holstein
(up 65%), followed by Saxony
(up 53%) and Baden-Württemberg
(up 45%). There has been
little or no increase in insolvencies
in the hospitality industry
in Saxony-Anhalt and Lower
Saxony.
T
TOPS
O M
OF THE MONTH
TOM
TOPS
OF THE
MONTH
RETAIL REAL ESTATE
Essential News About The Players In In
The Retail Real Property Estate Market In in Germany
IMPRINT
Publisher:
Handelsimmobilien Heute Verlagsgesellschaft
mbH
Address:
Alexanderstraße 16
45130 Essen
Germany
Tel. 0049-201-45 84 23 99
Web: www.hi-heute.de
Mail: tom@hi-heute.de
Frequency of publication:
monthly
Circulation: approx. 5000 copies
sent by e-mail
Editorial team: Susanne Müller,
Thorsten Müller
Responsible in terms of press
law: Thorsten Müller
Layout: K4-PR, Essen

URBAN CREATORS.
Architecture | Development & Project Management
European Council of Shopping Places (ECSP) Awards: Commendation for Best Renovation/Expansion for centres between 15.000 – 45.000 sqm

Page 7 INTERVIEW March 2024
„We are strengthening existing
properties and adding new qualities!“
TOM exclusive interview with Andrew handing Jones and Stefan Pehle from Aukett + Heese
The architects at AUKETT
+ HEESE (headquartered in
Berlin) have been planning
complex projects since 1992.
It all started 30 years ago with
one person and is now carried
on by 140 employees with great
commitment and sound experience.
TOM editor-in-chief
Thorsten Müller wanted to
know how they see the changes
in planning and construction
technology for large retail properties
and spoke to director
Andrew Henning Jones and
management member Stefan
Pehle.
TOM: The German Retail
Association is forecasting the
closure of around 5,000 stores
nationwide by the end of 2024:
what challenges will retail properties
face as a result from an
urban planning perspective?
Stefan Pehle: Retail properties
are currently facing challenges
and profound structural upheavals
resulting from the transformation
of the retail sector and
changes in customer behavior.
Architects today must therefore
- in addition to mastering urban
planning and functional tasks,
statics, technical installations,
etc. - find innovative solutions
to meet these challenges. - They
have to find innovative solutions
to master this change in meaning
and at the same time develop an
energy-efficient and sustainable
solution.
Andrew Henning Jones: Our
aim at AUKETT + HEESE is to
design future-proof architecture
that is sustainable, fits well into
the context and creates a strong
identity. With regard to city centers,
for example, vacant offices
or retail spaces are a major and
interesting challenge when it comes
to creating an attractive and
identity-forming environment
for retailers.
TOM: Which subsequent or
interim use concepts, especially
for large department stores,
do you see opportunities for?
And: Are there limits?
Stefan Pehle: The repurposing
of vacant space contributes sig
Andrew Henning Jones and Stefan Pehle from Aukett + Heese.
Photo: Aukett + Heese
nificantly to the repositioning
of entire building complexes.
We see good opportunities for
mixed uses with remaining retail
uses or services on the ground
and first floors and - where possible
- residential and office uses
on the upper floors. However,
the decline of department stores
and the associated risk of innercity
desolation also offers opportunities
for the establishment
of social and cultural facilities
and educational institutions.
With regard to the conversion of
buildings in general, most existing
retail spaces can be adapted
to changing requirements.
Important factors here are room
dimensions, materials and the
existing load-bearing construction
and structure. These must
be sufficiently flexible. If these
fit, other uses can be realized
in the properties than originally
planned. The limits of what
is feasible are then more likely
to be set economically - with a
view to returns.
TOM: Do you have any examples?
Andrew Henning Jones: One
example is the conversion of
Forum Steglitz from the 1970s.
On behalf of REAL I.S. AG, we
carried out the architectural conversion
and repositioning of the
entire building, which was completed
by 2022.
In the process, 1,000 sqm of
new space was created and
around 10,000 sqm of former
retail space was successfully
converted into office space. The
restructuring of the five-storey
shopping center into a mixeduse
building was carried out
while some of it was still in operation
and was a planning and
logistical challenge.
TOM: What mix of uses does
the center have now?
Andrew Henning Jones: The
new mix of uses, with three
floors for retail and two floors
for office use, as well as modern
fitness areas and restaurants, revitalizes
the center.
A brighter and more open design
was chosen to improve the quality
of stay in the long term. As
part of the restructuring of the
center, Berlin‘s largest and most
innovative Edeka store, called
Center „No. 1“, has opened on
around 5,000 square meters of
retail space.
Stefan Pehle: In addition to retail
and office use, we have also
planned space for the Free University
of Berlin. Various rooms
and two sports rooms have been
created on 3,750 square meters.
Forum Steglitz is a great example
of how educational institutions
can also find their place in a
healthy mix of uses. The success
of our work is not only reflected
in the fact that Forum Steglitz
has been nominated for the imAward
2024 in the existing building
project development category,
but more importantly, that
it has once again become a local
focal point.
TOM: What makes retail real
estate successful today? What
will the retail architecture of
the future look like?
Stefan Pehle: The location credo
continues to apply to retail.
The location and accessibility of
a retail property still determine
its success. In terms of space,
stores will only work in the future
if the overall concept in
combination with the goods is
right and thus encourages consumers
to buy on site. The innovative
Edeka store in Forum
Steglitz, for example, also has a
great synergy effect for the other
stores in the center.
Andrew Henning Jones: Innovative
design concepts are
increasingly focusing on customers‘
emotions. Here, too,
the creation of identity is an
important feature of architecture.
Around six months ago,
Berlin‘s most modern REWE
store opened in the Tacheles on
3,300 square meters as well as a
Rossmann store on 1,100 square
meters.
We designed and planned the
entrances from the first floor to
the basement, including the passage
as a striking entrance. The
escalator to the retailers, designed
in neutral tones, wooden
elements and indirect lighting,
gives customers a relaxed feeling
when arriving and leaving
the otherwise hectic everyday
life - the integrated shop window
is also a highlight.
Stefan Pehle: Another example
is „The Playce“ center at Potsdamer
Platz. We were commissioned
to provide architectural
services for phases 2-5 as part of
the modernization of the former
Potsdamer Platz Arkaden until
2022. The utilization concept is
based on six different thematic
areas. It includes modern architecture
with two-storey and
three-storey facades, a market
hall on 5,500 square meters with
high-quality gastronomic offerings
as well as a tenant and sector
mix with various concepts.
The Manifesto Foodcourt with
its culinary highlights and
events has a positive impact on
the perception of the other stores
in the center.

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Page 9 INTERVIEW March 2024
„We see a combination of digitalization and
innovation for the HI sector”
TOM exclusive interview with Yardi Sales Manager D-A-CH, Dennis Kasch
The software company Yardi,
which also has numerous
well-known companies as
clients in the retail real estate
sector, is currently presenting
itself with its own stand at
the international real estate
trade fair MIPIM in Cannes.
TOM editor-in-chief Thorsten
Müller spoke to Dennis
Kasch, Regional Sales Manager
D-A-CH, about the latest
developments.
TOM: How has the year
started for you in economic
terms? Are there any notable
changes compared to 2023?
Dennis Kasch: Fortunately for
us, tougher market conditions
result in an increased interest
from real estate investment
firms as they make their operations
more streamlined and
effective. This trend started last
year, and I expect this to continue
through 2024. This means
there is an increased interest in
technology and innovation in
general and, more specifically,
a continued growing interest in
the benefits of adopting Yardi
technology.
TOM: What special plans
does Yardi have for the future?
Dennis Kasch: Yardi is celebrating
40 years of the business
in 2024. We have a lot of
exciting projects and products
coming up. For example, the accelerating
adoption of the Yardi
platform for residential and
student housing. Our offering
is unmatched in the European
markets and connects marketing,
leasing and management
with the back-office to create
a frictionless experience. Our
solutions form a single, end-toend
platform that is designed
to digitise and automate operations.
It also empowers teams
to free up valuable time so they
can focus on nurturing tenants
and communities. Next to this,
we are very excited about the
innovative technology we’re introducing
around flex office and
coworking. This is on top of our
continued growth in the commercial
real estate verticals and
with fund administrators.
Sales Manager D-A-CH Dennis Kasch at the YARDI-MIPIM stand in Cannes.
TOM: Do your customers
have new software requirements
for Yardi and, conversely,
do you have new tools
that you can offer them?
Dennis Kasch: AI has become
a big topic in real estate. In 2023
we announced Yardi Virtuoso,
Yardi’s platform for artificial intelligence.
We’re excited about
AI as we’ve been investing and
experimenting with how AI and
machine learning can be used
effectively.
I think this is another great
example where Yardi manages
to use new technologies, in this
case AI, to develop real solutions
for real issues. The first AIsupported
Yardi solutions came
to market last year and we will
be introducing three additional
Virtuoso products in 2024. We
expect the roadmap for 2025
and beyond will drive future
growth of Yardi globally and
also in Germany.
TOM: How do you assess the
progress of digitisation among
companies in the retail real es
tate industry?
Dennis Kasch: There will be a
combination of digitisation and
innovation. In short, digitisation
is doing the things you do now
but doing them faster and more
efficiently using technology.
Innovation is doing different
things with the use of technology.
Retail real estate has access
to, and is used to working with,
larger data sets and more transactional
data than any other real
estate asset class.
In my opinion, I expect the adoption
of AI-supported concepts
and technologies to be quicker
and more meaningful than other
asset classes.
TOM: Where does Germany
stand in this respect compared
to other countries in Europe?
Dennis Kasch: Compared to
other European countries, Germany
is still behind in adopting
new and modern technologies.
Photo: TOM
It’s one of my goals to try and
speed up this adoption process,
especially as modern technology
is now incorporating AI.
As I mentioned earlier, Yardi
Virtuoso is another step to push
the real estate market into the
future. AI solutions delve deep
into operational data, going beyond
mere presentation. Today,
it’s no longer technology that
is the limiting factor in innovation,
but people. I believe that in
the next five years, AI will have
reached “adult status” in the
real estate industry and will be
something completely normal
in many companies.
The foundational data that is
harnessed from AI applications
can help with predictive analysis
and growth of a business.
KPIs and predictive analysis
generated by AI empower us to
make informed decisions. With
a strong data foundation, and
aggregating this data, companies
can operate more efficiently
and make better business decisions.

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Page 11 GUEST CONTRIBUTION March 2024
Out of the monoculture:
Multi-use as an exciting future space
Exclusive guest article by Markus Kratz, founder of kplus konzept, Düsseldorf
Vibrant city centers and district
centers are at the heart of
our communities. City centers
are traditionally focused on
brick-and-mortar retail and
are therefore currently facing
major challenges. A successful
transformation will be a
highly complex task for all
stakeholders in urban society
over the coming years. This
requires courageous and creative
ways of thinking.
Promising multi-use concepts
are close to everyday life and
the needs of city visitors of all
kinds. The decisive factor is a
convincing mix of residential,
office, retail and services - combined
with attractions such as
restaurants and experiences.
The starting point is the question
of exactly what uses people
need in the respective urban
area.
Customer journey
usually begins and
ends online
In future, the further development
of urban spaces and retail
locations along the customer
journey must be user-centered
and also take place digitally
with convincing storytelling.
The success of a future-proof
design of our city centers will
largely depend on whether it is
possible to implement the needs
of the younger generation in
particular in new concepts.
A positive customer experience
consists of seamless interaction.
Customers want to be seen, to
feel valued and understood. The
experience structure of virtual
spaces must be consistently reflected
in the ‚real life‘ of cities.
If it is more attractive to stay
on the couch and order online
instead of going to a shopping
center or the city center, we
have all done something wrong.
The centers must become places
of communication that offer added
value.
Markus Kratz is the founder and Managing Director of Düsseldorf-based kplus konzept GmbH with
expertise in the transformation design of city centers.
Photo: kplus
The necessary transformation
involves breaking down silos
and creating new realities. Locations
need to be rethought,
compelling stories need to be
told, outer and inner urban
spaces need to be staged in a
way that can only be done so
impressively live. Considering
communication, interior design
and architecture as a unit is already
part of the solution.
Health insurance
company in the
shopping center
In the middle of last year, AOK
Rheinland/Hamburg opened an
ultra-modern 600 square meter
branch in Forum Mülheim:
the novelty was the location in
the shopping center, combined
with a new brand staging close
to the living environment of
its customers. According to the
AOK branch in Mülheim, it has
around 42,000 policyholders,
100 of whom visit the branch
every day.
For the branches of AOK Rheinland/Hamburg,
kplus konzept
developed and implemented a
comprehensive remake and a
scalable spatial concept with a
model character for the transformation
in the insurance and
health insurance sector: consistently
customer- and advice-oriented,
with optimized
processes and designed with
sustainability in mind. Clear
message: personal health management
is the focus and at the
heart of life.
By the end of 2024, a total of
70 AOK locations will be rolled
out according to the interior
concept. In Duisburg, the AOK
moved into a former department
store, which the Greyfield
Group is developing into a focal
point for health and fitness with
extensive restructuring. And
in the metropolis of Cologne,
the health insurance company
found a new location in a former
retail space on Neumarkt in the
city center.
City garden
as a leitmotif
and inspiration
from nature
In the town of Hürth near Cologne,
there is no classic city center,
which is why Hürth Park,
an open-air shopping center,
has enjoyed great popularity for
almost 45 years. kplus konzept
developed a consistent design
concept for a comprehensive refurbishment
of all public areas
of the mall that meets current
requirements and needs. The
division of the mall into four
sub-areas tells the design story
and provides orientation for
customers: the open, spacious
‚Marketplace‘ as a sociable
meeting place with a food court;
the ‚Promenade‘ as an urban
boulevard with inviting lounge
furniture in the central area;
the green ‚City Garden‘ as an
oasis for breaks in the midst of
surrounding stores with a high
quality of lingering. And finally
the ‚Veedel‘, a shopping street
with a mix of chain stores and
fast food outlets very close to
the cinema.
The transformation of city
centers and urban areas into
sustainable spaces is a highly
complex and multi-layered
task. City centers have always
been places of change. The new
premise is now to consistently
create use-oriented, multifunctional
experience spaces for the
future generation.

www.wisag.de
Your shopping centre in the best hands
Perfect cleanliness, uncompromising security and optimum service:
all this keeps not only the customers satisfied, but also tenants and
owners. With our tailored solutions and experience, you will benefit
from optimum management costs. And at all times, we have value
retention and the sustained development of your centre in mind.
We go one step further for you.
Joaquin Jimenez Zabala
Tel. +49 162 7861-324 joaquin.jimenez.zabala@wisag.de

Page 13 ANALYSES March 2024
Germans‘ private spending by 5.5%
Overview of daily necessities and technical consumer goods
In Germany, private spending
on everyday consumer goods
(FMCG) and technical consumer
goods (tech & durables)
rose by 5.5% last year compared
to 2022. In 2023, this
market amounted to a total of
394.5 billion euros. The higher
spending was driven in particular
by price increases for
food and drugstore products,
while consumers saved in the
T&D sector.
The new NIQ Retail Spend Barometer
combines data from
NIQ and GfK to provide the
most holistic insight possible
into market potential and developments
in FMCG and consumer
durables across Germany.
It provides a complete overview
of spending in the FMCG sector
- i.e. everyday consumer
goods such as durable and fresh
food, beverages and drugstore
products - as well as in the tech
and durables sector, i.e. technical
consumer goods, household
appliances and DIY supplies, in
Germany. This cross-category
and cross-channel big data overview
based on real sales data is
unique to date.
Price increases
drive spending
Consumers in Germany spent
a total of 8.9% more on FMCG
products last year than in 2022.
This increase is primarily due
to price increases driven by inflation
and higher procurement
costs. Across all categories, the
increase in spending in the first
half of 2023 compared to the
previous year was stronger than
in the second half of the year. A
slight increase in sales of 1.5%
was also achieved for the first
time in the fourth quarter.
This development was driven
by discounters and drugstores
- traditional supermarkets were
the only sales channel not to
experience any sales growth. In
2023, retailers also increasingly
relied on special offers: The
proportion of promotions increased,
particularly in the food
sector. This enabled retailers to
achieve a pull effect and create
a higher shopping frequency.
Private labels are also on the
rise: they recorded increases in
Germans spent more money in the previous year - mainly due to price increases.
Symbolic image: Depositphotos / Vadim Vasenin
market share in almost all categories,
both in terms of volume
and sales.
In the personal care, home care
and pet food categories, both
brick-and-mortar drugstores
and online retailers increased
their sales thanks to more frequent
and more extensive purchases.
The situation is different for
T&D products such as household
appliances, technical consumer
goods and DIY supplies.
Saving on
T&D products
Here, retail spending fell by
1.7% in 2023 compared to
2022. The DIY sector in particular
experienced a 4.4% drop
in sales. Household appliances
(-2.4%) and technical consumer
goods (-1.6%) also recorded
declining sales in 2023. Consumers
are increasingly focusing
on replacing defective products
instead of introducing new products
into their own households
or upgrading functioning appliances.
Better management
for the new year
This is due to a decline in consumer
sentiment, the associated
propensity to save and a certain
saturation in the technology sectors
that were in high demand
during the pandemic. One exception
is the small household
appliances sector, which grew
by 1.5% in 2023 compared to
the previous year. Innovative,
multifunctional products performed
better than the market average
and were able to achieve a
price premium. These primarily
include cordless handheld vacuum
cleaners, deep fryers and
appliances for hair care and styling.„The
NIQ Retail Spend Barometer
makes it clear that 2023
was not an easy year, especially
for retailers and manufacturers
in the consumer durables sector.
FMCG retailers such as supermarkets
are also feeling the
consequences of changing
shopping behavior in times of
inflation and uncertainty, as
well as the increasing battle between
channels and competitors
for consumers‘ budgets,“ says
Oliver Schmitz, Head of Retail
DACH at NIQ/GfK. „In order to
remain attractive and competitive
in 2024, retailers will have to
manage their prices even more
strongly and dynamically due
to inflation and price increases
- in order to secure important
margins. This also includes customer-centric
category management.
Expansion into new product
ranges, channels or even
regions or countries can help as
a growth strategy.“

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Page 15 T O M
MAP OF THE MONTH March 2024
GfK Demographics, Senior households, Germany 2023
GfK‘s Map of the Month for March shows the regional
distribution of senior households in Germany
in 2023. According to the Federal Institute
for Population Research (BiB), the birth rate in
Germany is the lowest it has been since 2009; society
is becoming increasingly older. But where in
Germany do you find the highest share of senior
households? The latest GfK data on demographics
shows that the share of households in which
the main earner is aged 60 or over is highest in
rural areas and in eastern Germany. The urban
district of Suhl in Thuringia has the highest share
of senior households: 49.0 percent of all household
heads there are over 60. Second place in the
district ranking is taken by the Erzgebirgskreis
with 48.6 percent, followed by the Vogtlandkreis
with 48.4 percent. At 28.3 percent, Regensburg
has the lowest share of senior households.