German retail store numbers seen falling below 300,000 for first time

The number of brick-and-mortar retail stores in Germany is set to drop below 300,000 this year for the first time, according to an estimate by the German Retail Association (HDE).

The figure is expected to decline further by around 4,900 to about 296,600 in 2026, with both closures and new openings already factored into the forecast released on Sunday.

The number of stores has not fallen below 300,000 since German reunification, the association said. At the end of 2015, there were still around 372,000 shops nationwide, but tens of thousands have closed in recent years.

The situation worsened significantly during the Covid-19 pandemic, when many stores were forced to shut temporarily. The number of outlets fell by 11,500 in 2021 and by 11,000 in 2022.

In 2025, it declined by a further 4,500 to around 301,500.

The continued growth of online retail has put pressure on physical stores, HDE said.

HDE President Alexander von Preen warned of the consequences, saying many German city centres are already visibly affected by rising vacancies.

“This cannot and must not continue,” he said, adding that there are no signs of improvement. The situation is particularly serious for many small and medium-sized retailers.

“The environment remains challenging, with consumer sentiment stagnating for years,” von Preen said, calling on policymakers to reduce costs for energy and labour.

The sector had a mixed year in 2025. While online retail regained momentum, posting a price-adjusted increase of 3.5% according to the HDE, sales in physical stores stagnated.