Percentage of German retailers hit by supply issues falls in Jul

Compared with the previous year, this proportion has roughly halved.

“Despite more stable supply chains, the business environment remains tense for many retailers,” said ifo expert Patrick Hoppner in a release. “At the same time, the current period of economic weakness, combined with continued high inflation, is weighing on demand.”

In clothing, toy, and furniture retail, just under 20 per cent of businesses were affected.

For some retailers, the recent significant rise in interest rates has made the impact of higher financing costs on their business situation more noticeable.

“In addition, in some lines of business, it has also become more difficult to obtain new loans in the first place. These problems have intensified in areas such as the retail of home textiles and bicycles as well as in mail-order and online retail,” Hoppner added.

This primarily affects areas that saw especially dynamic growth in demand during the pandemic years but were unable to sustain this growth, the release said.

ALCHEMPro News Desk (DS)