Abstract
Overview
Introduction
Verdict Research: After years of slow growing demand and with last year' s VAT rise behind it German retailing is entering a new phase. Despite economic storm clouds, the liberalisation of opening hours and expected reform of the pharmacy sector present new opportunities. Retailers are also adapting to the expansion of discounters by developing new pricing propositions and niche formats.
Scope
- This report provides accurate insights into key trends, future developments and discusses the strategies of the main operators in the market.
- Proprietary data on market value, specialists sales and growth. 2002-2007 data for six different retail sectors and overall value data for Germany.
- Detailed sector analysis for grocery, DIY, electricals, furniture, clothing (including department stores) and out-of-town retailing is provided.
- Market shares for leading retailings in each sector and insightfuil analysis into their operating strategies.
Report Highlights
In five years time one in every two Euros in German grocery retailing will be taken by the discounters. Aldi and Lidl are trading from an inherently strong position in the country. With Edeka' s might behind it, Plus will be invigorated and embark on an aggressive expansion policy. Rewe' s Penny meanwhile needs to run just to stand still.
The discounter boom has spread like wildfire from grocery to other sectors. In DIY Praktiker has embarked on a downsizing and price cutting exercise. In furniture discounting has reached endemic proportions, in clothing KIK and Takko produce industry beating growth rates and in general merchandise Tedi and Kodi are growing strongly.
A direct result of extremely tough trading conditions is that the wheels of the consolidation bandwagon have begun to turn. The process was kick started by Metro' s Wal-Mart acquisition in 2006. Looking ahead we expect more consolidation, especially in the highly fragmented furniture sector and the pharmacy market, which is set for liberalisation.
Reasons to Purchase
- Understand strategic issues in the market, retailers' responses and our recommendations on how retailers must cope with the changing market.
- Learn about major German players including Edeka, Rewe, Metro, Aldi, Schwarz, Arcandor and Schlecker alongside information on specialist discounters.
- Discover how the market and retailers' future initiatives will develop. Find growth opportunities in specific sectors and identify the key threats.
Table of Contents
- CHAPTER 1 EXECUTIVE SUMMARY
- Key Findings
- Main Conclusions
- CHAPTER 2 GERMANY - ECONOMIC OVERVIEW
- Key Findings
- Main Messages
- GDP
- Inflation
- Interest Rates
- Employment
- Demographic Overview
- CHAPTER 3 GERMAN RETAIL MARKET
- German Retail Market Size
- CHAPTER 4 FOOD & GROCERY
- Market Summary
- Recent Developments & Trends
- Shares of Grocery Retailers in Germany
- Outlook for Grocery Retailing in Germany
- CHAPTER 5 CLOTHING & FOOTWEAR
- Market Summary
- Recent Developments & Trends
- Shares of Clothing Retailers in Germany
- Department Stores
- Leading Department Store Operators
- Recent Developments & Trends
- Discount Clothing Retailers
- Outlook for Clothing Retailing in Germany
- CHAPTER 6 DIY
- Market Summary
- Recent Developments & Trends
- Shares of DIY Retailers in Germany
- Outlook for DIY Retailing in Germany
- CHAPTER 7 ELECTRICALS
- Market Summary
- Recent Developments & Trends
- Shares of Electricals Retailers in Germany
- Outlook for Electricals Retailing in Germany
- CHAPTER 8 FURNITURE
- Market Summary
- Recent Developments & Trends
- Market Shares of Leading Furniture Retailers in Germany
- Outlook for Furniture Retailing in Germany
- CHAPTER 9 OUT-OF-TOWN RETAILING
- Market Summary
- Retail Warehouse Space
- Legislation and Planning Issues
- Retail Warehouse Parks
- Outlook for OOT Retailers in Germany
- CHAPTER 10 STRATEGIC ISSUES
- VAT Rise Puts Sales Back Two Years
- Discount Evolution Spreads Out From Grocery
- Discounters and Green Retailers Push Organic Boom
- Opportunities
- Shift to Price Plus
- Eastern Opportunities Drive Internationalisation
- Pharmacy Liberalisation Would Be Growth Opportunity
- Major retailers are joining the consolidation trend
- Forecast
- CHAPTER 11 GLOSSARY
- Definitions
- Abbreviations
- List of Tables
- Table 1: Germany retail market size 2000-2007e
- Table 2: Germany grocery retail snapshot 2002-2007e
- Table 3: Germany % share of grocery value sales by format 2001-2006
- Table 4: Germany % change in grocery value sales by format 2001-2006
- Table 5: Germany grocery market share 2007e
- Table 6: German clothing expenditure & specialist sales 2002-2007e
- Table 7: German clothing specialists 2002-2007e
- Table 8: Germany clothing specialists market shares 2007e
- Table 9: Germany DIY expenditure & specialist sales 2002-2007e
- Table 10: Germany DIY specialists 2002-2007e
- Table 11: Germany DIY market shares 2007e
- Table 12: Germany eletricals expenditure & specialist sales 2002-2007e
- Table 13: Germany electricals specialists 2002-2007
- Table 14: Germany electricals market shares 2007e
- Table 15: Germany furniture expenditure & specialist sales 2002-2007e
- Table 16: Germany furniture specialists 2002-2007e
- Table 17: Germany furniture specialists market shares 2007e
- Table 18: Germany OOT sales 2002-2007e
- Table 19: Germany OOT selling space 2002-2007
- Table 20: Leading retail warehouse parks by space 2007
- Table 21: Germany organic market performance 2002-2007e
- Table 22: Tegut sales performance 2002-2007
- List of Figures
- Figure 1: Germany GDP 1999-2009
- Figure 2: Germany GDP forecast 2007, 2008 & 2009e
- Figure 3: Germany vs EU HICP inflation 2003-2007
- Figure 4: ECB interest rates 2001-2007
- Figure 5: Total unemployment Germany vs EU27 2000-2006
- Figure 6: Forecast population growth Germany & EU25 (%) 2015 on 2005
- Figure 7: Jack & Jones, New Yorker 2007
- Figure 8: Karstadt 2007
- Figure 9: Galeria Kaufhof 2007
- Figure 10: Breuninger, Nürnberg 2007
- Figure 11: KiK, Düsseldorf 2007
- Figure 12: Takko 2007
- Figure 13: CentrO, Oberhausen 2007
- Figure 14: Retail growth 2001-2007
- Figure 15: Success factors for Aldi 2007
- Figure 16: Tedi, Düsseldorf 2007
- Figure 17: Basic, Düsseldorf 2007
- Figure 18: German retailers opportunities 2008
- Figure 19: Key drivers of greater internationalisation 2008
- Figure 20: Doc Morris, Düsseldorf 2007
- Figure 21: Consolidation timeline 2005-2008 and forecasts
- Figure 22: Germany retail sales forecast 2002-2012
