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Germany: energy costs take a toll on retail

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Germany: energy costs take a toll on retail

With doors closed and lower heating, retailers hope to limit costs caused by energy crisis. Worth noting, as the related post says german wavethat retail electricity costs in Germany have risen by 150% since the beginning of the year. In my study German Retail Association HDEhalf of businesses say they face a lockout.

Retailers are now betting on energy-saving measures to get through the winter. For example, shops will be heated to lower temperatures. “Each degree reduces energy consumption by up to 6%,” notes Patrick Ohn of the German Retail Association. Early supermarkets are already considering reducing opening hours to curb rising electricity prices. Along with the voluntary measures, the federal government has also announced mandatory ones, with a special regulation that applies from 1 September. So, for example, shops will warm up to a maximum of 19 degrees, and outdoor advertising lighting will be turned off from 22:00. until 6:00 in the morning and the doors of the shops will not remain open, but will be closed. However, Karina Peretzke of the North Rhine-Westphalia Trade Association has reservations about mandatory closed doors, especially in smaller stores: “If the door is closed, fewer customers come in.” Because, as he explains, psychologically closed doors are perceived as an obstacle.

In order to attract more people to the market, the German Retail Association launched the “Closed Doors, Open Stores” advertising campaign at the initiative of the North Rhine-Westphalia Trade Association. Colorful posters inform shoppers that stores are open despite closed doors. “So far our campaign is going very well,” says Patrick Sties. Most of the customers are sympathetic to the measures because energy saving is becoming more and more serious in their daily life. In a conversation with DW, a passer-by said: “This is the right decision that we can make to reduce energy losses. Unfortunately, it somewhat spoils the mood to see closed doors everywhere and go into cold rooms. But I don’t think we have any other choice.” For retail, the main problem is different, says Karina Peretske, because after more than two years of the pandemic and today’s high inflation, purchasing power is currently at its lowest level. In particular, small shops have problems: “Unfortunately, we no longer have savings, they have run out. And now we have higher costs, as do customers, so they only buy what they need,” he notes.

In the center of many German cities, not only smaller shops are closing. Even large networks are leaving the market and focusing on online sales. Therefore, more and more surfaces in central places remain free. Urban planner Stefan Kruse from Dortmund proposes to create multifunctional spaces there that will combine trade, education, gastronomy and culture. However, such plans cannot be implemented overnight, especially in the current situation where financial resources are limited.

Author: newsroom

Source: Kathimerini

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