A lost Christmas for many retailers, up to 250,000 jobs threatened
BDA AGENDA | COMMENT OF THE WEEK: Josef Sanktjohanser
December is the time of Christmas markets, the time of gift shopping, the time of crowded city centres. Usually. But in these weeks, the city centers are empty and many retailers are closed. As a result, Christmas shopping this year is becoming more digital. The past few months have already shown that.
The search for gifts currently takes place mainly on the Internet. In contrast, only a few people found their way into the city centres, even when the shops were still open. At the beginning of November, customer frequency in local shops plummeted. Retailers recorded a drop of 40 percent on average compared to the previous year, and fashion retailers were hit even harder. Since then, footfall has remained at a low level.
From the pre-Christmas period to the turn of the year, retailers generate a large part of their annual sales. But this year, inner-city retailers are faced with significant sales losses - to the point of a zero diet in another lockdown. Compared to last year's Christmas sales, sales were recently down 30 percent. The lockdown now imposed will hit just under 200,000 retail businesses, with over 90 per cent of these businesses being small and medium-sized enterprises. Downtown retail represents up to 600,000 employees, of which up to 250,000 jobs could be lost due to the lockdown.
This year's Christmas business is thus not only unusual, but also threatens the existence of many retail companies. Up to 50,000 retail companies are facing insolvency. There is a threat of desolation in the city centres, which can only be averted with state support. Important building blocks would be a quick disbursement and a further adjustment of the bridging aid as well as a quick adjustment of the tenancy law. Otherwise, the Christmas downtown stroll could become dark and dreary in the coming years.