Contents
- 1 A Splendid Dichotomy: Germany’s Retail Landscape
- 2 A Gloomy Year for Footwear
- 3 Seasonal Optimism Yet to Bear Fruit
- 4 Bargaining for Stability
- 5 The E-commerce Boom
- 6 Asian Marketplaces Lead the Charge
- 7 Flickers of Consumer Confidence
- 8 Footwear Prices and Prospects
- 9 Import Surge: A Puzzling Phenomenon
- 10 The Asian Influence
A Splendid Dichotomy: Germany’s Retail Landscape
The German retail sector presents an intriguing dichotomy. The footwear and leather goods market is grappling with a challenging year, experiencing a sales decline of 4.2% within the first eight months, juxtaposed with a bustling overall retail and e-commerce scene, buoyed by Asian marketplaces.
A Gloomy Year for Footwear
Sales in the footwear and leather goods sector have been decidedly bleak. The year has witnessed an 11-month streak of negative growth in footwear sales. While March hinted at a possible turn for the better, summer did little to lift spirits. As Thomas Gitzel, chief economist at VP Bank, aptly observed, the summer buying mood was “very cool” (source: Reuters).
Seasonal Optimism Yet to Bear Fruit
Events such as the start of the school year, Halloween, Black Friday, and Christmas might offer a glimmer of hope. However, expectations for a significant rebound by 2025 remain dim. Despite this, the overall German retail sales enjoyed a 2.5% boost, a stark contrast to the footwear sector’s plight.
Bargaining for Stability
In an encouraging development, the IGBCE union and the German Footwear and Leather Goods Industry Association (HDS/L) achieved a collective bargaining agreement on October 13, 2025. This accord addresses pay grades and wages, securing stability amid an unpredictable environment. Manfred Junkert, Managing Director of HDS/L, emphasised the importance of this agreement in providing firms with essential planning security (source: HDSL).
The E-commerce Boom
Online retail continues its ascent, recording a 12.9% rise in turnover over the same period last year. Curiously, online shopping surged during the summer, in contrast to the tepid performance of physical stores. However, the boom has not been uniform. While marketplaces thrived, conventional online shops recorded modest gains following earlier slumps.
Asian Marketplaces Lead the Charge
Asian platforms like Temu, Shein, and AliExpress significantly contributed to German e-commerce growth. Fashion notably benefited, with these platforms accounting for a striking 14.1% of orders (source: Shoe Intelligence).
Flickers of Consumer Confidence
Despite a dip in 2024, consumer confidence has shown a 21.8% increase since January, though it remains in negative territory amid inflation and geopolitical worries. This improvement, albeit fragile, signals a possible recovery in the horizon (source: WSJ).
Footwear Prices and Prospects
Footwear inflation averaged a modest 0.6% this year, occasionally dipping into negative rates. Yet, September saw a rise to 1.2%, suggesting a potential uptick in consumer activity and an eventual market recovery.
Import Surge: A Puzzling Phenomenon
Germany’s footwear imports, defying domestic sales trends, have soared by 16.9%, reaching 8.4 billion euros. Intriguingly, the import price has risen by 1.2%, averaging 18 euros per pair—22 cents more than last year.
The Asian Influence
China’s shipments increased by 13%, but Vietnam and Indonesia are gaining ground with impressive export growth of 36.1% and 33.0%, respectively. Despite the uncertain conditions, HDS/L anticipates positive industry shifts in the coming months (source: Shoe Intelligence).
In conclusion, while uncertainty hovers over the German footwear sector, there exist signals of recovery and opportunities within the wider retail landscape. The resilience of online marketplaces and consumer optimism may yet pave the way for a brighter future.
