Trend survey: 60 percent of companies in city centers are on the verge of going out of business without further help
The year 2021 could end in insolvency for many trading companies affected by the lockdown. A current HDE trend survey among 1.500 retailers shows that around 80 percent of retailers assume that the current aid measures are not enough to secure their existence. Almost 60 percent of companies in city centers are on the verge of going out of business without further government aid. The German Trade Association (HDE) therefore continues to urgently call for the Federal Finance Minister to adjust the bridging aid.
“If Minister Scholz quickly revises the bridging aid promised and adapts the application criteria better to the retail situation, then there is still a chance of preventing the worst. Otherwise, 2021 threatens to become a catastrophe year for many retail companies and, as a result, for entire city centers,” said HDE Managing Director Stefan Genth. The results of the HDE survey show that the aid is not arriving. Accordingly, many of the companies surveyed are pessimistic about the year that has just begun: 23 percent expect that they will have to give up in the first half of the year without further government support, and for the second half of the year this figure even rises to a further 28 percent.
The poor future prospects can also be explained by the Christmas business being far below normal for many retailers. According to the HDE survey, sales in the clothing trade in November were almost a third below the previous year's values and in December 44 percent. “High sales losses in the Christmas business, which is vital for many retailers, are putting numerous companies in a precarious situation through no fault of their own,” continued Genth. Retailers support the measures to contain the pandemic, but on the other hand, the companies suffering from the closures need to be effectively supported in order to survive this time. Genth: “Politicians must now stand by the economic consequences and their own promises. Ducking away and sitting it out is not possible.”
