German shoe shops struggle amid online competitor rise

In 2016, 75% of German shoe stores failed to reach the levels of 2015. Only 10 % increased sales. Overall, retail sales of footwear decreased by 2%, with smaller companies suffering more. The statement comes after main data was disclosed by BDSE, the Federation of German shoe retailers. Online sales went well, even though the growth rates were more moderate than in the past. BDSE estimated that the share of online sales is 17%. The shoe market is suffering the decline in visitors in the shopping streets of the major cities. About 80% of the shops witnessed a reduced interests in their products. The growing competition from online suppliers caused traditional sales suffering as online retailers can afford significant reductions in prices over of the year. According to the Federation, about 40% of retailers want to invest in multichannel projects as well as in making traditional locations more appealing by providing the kind of assistance that the customer does not find online. “Germany is no different from other markets, where sales are now distributed in a different way than in the past. However, even in this situation, some people are still growing” said Arturo Venanzi, of Franceschetti Montegranaro who works with the German market. “Few visitors in the shopping streets? Before they were exclusive with luxury brands, now the price target has been reduced, and some boutiques have been replaced by fast fashion brands. The quality offer dropped too. Therefore you have to get organised in this new landscape.”

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