Fears Crowds, Long Lines, and Small Pet Shopping Overtake HDE
In the face of potential nighttime curfews, the German Retail Association (HDE) has sounded the alarm, warning of potential disruptions to food retailers and the threat of 50,000 bankruptcies in the retail sector.
Stefan Genth, CEO of the HDE, has expressed concerns about the impact of curfews on store capacity and operating hours. With limited hours, retailers may struggle to serve customers effectively, leading to higher in-store density during peak hours and potentially making it difficult for customers to shop comfortably and safely.
Genth also fears that consumers may resort to hoarding in response to the perceived scarcity created by the curfews. This could lead to stock shortages and logistical challenges for retailers. The CEO has called for special rules to allow employees to work beyond curfew hours for restocking purposes.
In 2020 alone, around 36 billion euros in retail sales were lost, and an additional 16 billion euros in sales are expected to be missing in January of this year. The HDE CEO has criticized the distribution of economic aid, stating that non-food retail sector companies received only 90 million euros of the billion programs in 2020.
Federal Economics Minister Peter Altmaier (CDU) is working on simplifying the bridging aid, a move that Genth sees as a positive signal. However, the CEO has emphasized the need for significantly higher payout amounts to support large chain stores.
Genth has also suggested that email communication should be considered an essential service during curfew hours to help manage logistics and restocking. He has emphasized the need for swift state aid to prevent widespread bankruptcies in the retail sector.
The HDE's warnings come as cities across Germany consider implementing nighttime curfews to curb the spread of COVID-19. While supermarkets and pharmacies often remain open within allowed times, customers are typically restricted to traveling alone or with household members.
Historical pandemic responses suggest that these curfews could lead to increased daytime foot traffic as consumers try to complete their grocery shopping earlier in the day, and potential hoarding as consumers react to the compressed shopping windows and perceived scarcity created by the curfews.
[1] Source: German Retail Association (HDE)
As the situation evolves, it is crucial for both retailers and consumers to adapt to the new shopping environment and for the government to provide adequate support to prevent widespread bankruptcies in the retail sector.
Other sectors, such as health-and-wellness, could be affected by the potential nighttime curfews, given the increased daytime foot traffic predicted due to compressed shopping windows. The HDE CEO has advocated for email communication to be considered an essential service during curfew hours, which might prove beneficial for online health-and-wellness retailers.
