Germany's Online Retail Sector Sees Positive Growth Forecast for 2025
The German Retail Federation projects a 4% increase in online retail revenues as consumer confidence shows signs of recovery.
Berlin - The demand for online retail in Germany is on the rise, according to the German Retail Federation (HDE), which has revised its forecasts for 2025 upward despite ongoing consumer pessimism.
The federation now expects an annual growth rate of 4% in online retail revenues, reaching €92.4 billion, an increase from the previously anticipated 3% growth.
In 2024, the overall revenue in German retail experienced a real growth of 1.1%, adjusted for seasonal effects.
Stephan Tromp, Deputy Managing Director of the HDE, stated that "online retail is again the engine of growth in the German retail sector after a number of weak years."
The HDE noted particularly strong growth in online purchasing of food and pharmaceuticals.
Although consumer morale in Germany has improved somewhat in recent months due to hopes for economic recovery under the new government, it remains firmly negative, influenced by ongoing trade tensions and prolonged recession pressures on households.
Moreover, German consumers are increasingly drawn to Chinese e-retailers such as Temu and Shein, which have shifted their focus to the European market in light of U.S. tariff policies.
Tromp remarked, "It is clear that both companies are turning to Europe, as the U.S. market has become unattractive for them due to customs policy."
The changing landscape of international trade and consumer preferences continues to shape the dynamics of the retail sector in Germany, with online shopping playing a pivotal role in driving growth.
The federation now expects an annual growth rate of 4% in online retail revenues, reaching €92.4 billion, an increase from the previously anticipated 3% growth.
In 2024, the overall revenue in German retail experienced a real growth of 1.1%, adjusted for seasonal effects.
Stephan Tromp, Deputy Managing Director of the HDE, stated that "online retail is again the engine of growth in the German retail sector after a number of weak years."
The HDE noted particularly strong growth in online purchasing of food and pharmaceuticals.
Although consumer morale in Germany has improved somewhat in recent months due to hopes for economic recovery under the new government, it remains firmly negative, influenced by ongoing trade tensions and prolonged recession pressures on households.
Moreover, German consumers are increasingly drawn to Chinese e-retailers such as Temu and Shein, which have shifted their focus to the European market in light of U.S. tariff policies.
Tromp remarked, "It is clear that both companies are turning to Europe, as the U.S. market has become unattractive for them due to customs policy."
The changing landscape of international trade and consumer preferences continues to shape the dynamics of the retail sector in Germany, with online shopping playing a pivotal role in driving growth.
