Retailing in Germany: Current Landscape and Future Trends

Abstract

The purpose of this paper is twofold. Firstly, there is an analysis of the current retailing landscape in Germany. This landscape is presented by distinguishing between food/near-food and non-food markets. The paper introduces the most important retail formats in Germany, and seven major retail companies and groups that are characterized by one or more of these retail formats. Secondly, the paper examines future trends and challenges confronting the German retailing industry by studying the macro and micro environments. The PESTEL framework is applied to analyse the macro environment. The paper thus focuses on developments in the economic, technological and socio-cultural spheres. The micro environment is described by means of Porter's Five Forces framework as the structural background. The paper emphasizes major trends and changes in consumer behaviour and e-commerce as a potential substitute for traditional bricks-and-mortar retailing.

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