Research Analysis Germany

Subscribe

Advertise your job ad
    Search jobs

    Germany's retail turnover to rise by 2%

    NUREMBERG, GERMANY: According to calculations by GfK GeoMarketing, retail sales are likely to be 2% higher this year than in 2010 and reach a total volume of €406* billion. However, if prices climb relatively steeply this year, this could dampen consumers' willingness to spend and consequently impact retail sales.
    Germany's retail turnover to rise by 2%

    The survey, conducted by GfK GeoMarketing, focuses on calculating regional retail turnover for all cities and municipalities with more than 10 000 inhabitants.

    Predictably, cities with a large number of inhabitants are showing the highest retail turnover levels in absolute terms. However, in relation to the number of inhabitants in the retail location, the following urban districts stand out with significantly above-average turnover levels: In a comparison of major cities according to per capita sales, Munich is out in front, followed by Dusseldorf, Nuremberg, Stuttgart and Cologne.

    Medium rank higher

    However, medium-sized cities rank even higher in a comparison of relative sales according to the size of cities: The retail sector in these urban districts proportionally attracts even more purchasing power than the major cities. The top 5 medium-sized cities - Straubing, Weiden, Passau, Schweinfurt and Rosenheim, which are all located in Bavaria - are recording per-capita turnover of around twice the national average. The retail sector in these cities is drawing purchasing power from far beyond the borders of the urban district, with the result that sales are significantly higher than the retail purchasing power of the city's inhabitants alone.

    The retail sector in medium-sized cities has a particularly high drawing power because these cities service the surrounding, often rural, regions. In many locations, efforts made by urban developers to stem the flow of purchasing power into the major cities by creating an attractive retail landscape are also bearing fruit. Conversely, the potential of the retail industry in many of the major cities has already been exhausted.

    Note:

    The per capita values are a purely mathematical benchmark, because the retail facilities of a given location are not only accessed by local inhabitants. However, by studying the retail sales in relation to the population figures, it is possible to obtain an initial indication of the drawing power of the retail sector in the region in question.

    The survey

    The GfK Retail Turnover 2011 study forecasts sales at the point of sale and is an important indicator for retail companies in terms of branch network and expansion planning, as well as controlling. In contrast to GfK Purchasing Power, which is recorded at consumers' places of residence, GfK Retail Turnover is recorded at the retail location, excluding automotive and fuel sales and mail-order retail but including retail sales in bakeries, confectioneries and butchers' shops.

    GfK GeoMarketing annually calculates GfK Retail Turnover for all of Germany's regional levels as a total sum, per inhabitant in euros and as an index (German average = 100). The calculation is made for all German urban and rural districts, municipalities and postcodes with more than 10 000 inhabitants.

    *Exchange rate at time of publication: €1=R9.68.

    Source: GfK

    The GfK Association was established in 1934 as a non-profit organization for the promotion of market research. Its membership consists of approximately 600 companies and individuals. The purpose of the Association is to develop innovative research methods in close cooperation with academic institutions, to promote the training and further education of market researchers, to observe the structures and developments in society, the economy and politics that play a key role in private consumption, and to research their effects on consumers. Survey results are made available to the membership. The GfK Association is a shareholder in GfK SE.

    Go to: http://www.gfk.com
    Let's do Biz