Prof. Dr. Tobias Just, FRICS, University of Regensburg and IRE|BS Real Estate Academy
The Federal Statistical Office reports a total of 334,591 companies in the retail sector (excluding motor vehicle trade, more recent data are not yet available) for 2022, which is over 83,000 fewer companies than twenty years earlier, and the decline was steady except for the Corona shock. At the same time, there is around 10% more sales space today than twenty years ago – even though this increase in space took place until 2010 alone and has been moving sideways since then. Both figures illustrate the challenges in brick-and-mortar retail: Competition for space is fierce, and the associated competitive pressure ensures low margins. And because online platforms offer presentation areas that can be expanded at will, the pressure has been significantly intensified by digital competition.
The complete article by Prof. Dr. Tobias Just, FRICS, University of Regensburg and IRE|BS Immobilienakademie can be downloaded via the following button.
