Germany's Small Retailer Count Falls 28% Since 2010 as Discounters Gain Market Share

The number of small retail stores in Germany with annual sales below €250,000 fell from 236,143 in 2010 to 170,770 in 2025, a decline of 28 percent, @zerohedge reported. Across all size categories, the total number of retail stores shrank 16 percent over the same period, leaving just over 316,000 outlets in operation.

In 2025, 2,440 retailers filed for bankruptcy, a 9 percent increase from 2024, with fashion stores, bookstores, and bakeries among the hardest hit.

Specialty stores in city centers, on side streets, and in shopping malls accounted for most of the losses. Creditreform economist Patrik-Ludwig Hantzsch attributed the contraction to inflation, weak consumer demand, higher operating costs, and rising competitive pressure.

Non-food discount chains such as Action, Tedi, Hema, Woolworth, and Thomas Philipps gained market share in household goods, toys, and stationery.

An IfH survey found that 85 percent of Germans had shopped at non-food discount chains in the past two years. The German Retail Federation (HDE) warned that the total number of stores could fall below 300,000 in 2026. HDE President Alexander von Preen called for lower energy costs and payroll taxes, and urged landlords to adopt revenue-based rents to limit vacancies.

Research from the Institute for Retail Research in Cologne showed that empty storefronts reduce foot traffic, weaken city image, and cut revenue for municipalities and neighboring businesses. Creditreform stated that traditional shopping-focused city centers are no longer effective in many areas and recommended combining retail with leisure, dining, and residential uses.

Small retailers were advised to emphasize specialization, customer service, digital presence, and distinctive experiences.