Retail in Germany: The march of the discount giants

​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.