Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Business German Market

15,000 German stores facing closure (Photo by Gregor Fischer/Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

Oct 4, 2022

A Real Threat to German Stores

Tens of thousands of stores in Germany are facing closures due to skyrocketing energy prices. 

Key Details

  • The German Retail Association (HDE) has written a letter to Vice-Chancellor Robert Habeck that warns that stores are facing an existential threat, as they are unable to make consistent profits. 
  • “The group called the situation ‘existentially threatening’ and said that around 16,000 businesses may go bankrupt this year, while the ‘negative trend’ is likely to continue through 2023,” says news network RT. 
  • HDE is warning that energy costs have spiked more than 147% since January. 
  • “The share of electricity costs in sales volumes for retailers has already reached almost 3% on average and many in the industry expect this figure to rise to as high as 5% in 2023,” says RT. 
  • Operating profit has shrunk into the negatives in several sectors of the economy, namely shoes which are operating at a -1.2% profit margin. Food is only operating at 2% to 4%.
  • Germany’s inflation rate is nearly 10%, Der Spiegel reports.

Why it’s important

The entire European economy is facing a crunch this winter as energy skyrockets prices but the effect of this is going to crush small businesses and potentially damage the supply chain for necessities. 

As we previously reported, the EU is facing an ongoing energy crisis due to the war in Ukraine. The recent shutdown of the Nordstream pipeline has contributed to Europe’s ongoing energy crisis, forcing the nationalization of industries, and creating a need to find energy-dependent solutions. 

The EU is even facing additional pressure to crack down on energy consumption, with the IEA saying a 13% decrease is necessary for Europe to survive the winter. This decrease will mostly affect small businesses and homes. 

The emergency is placing a crunch on small businesses with limited profits and skyrocketing energy prices. It is no surprise that nearly 16,000 German businesses are on the line. 

Notable quote

“The trade association is now demanding measures from Habeck to counter ‘ruinous peak loads’: the ‘maximum expansion of the energy supply,’ a temporary electricity price cap and a reduction in electricity tax to the EU minimum and ‘effective hardship aid’. On Thursday, the federal government presented new measures to combat high gas prices,” says Der Spiegel. 

Home / News / A Real Threat to German Stores
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

Personal Growth

Oct 25, 2023

The Importance of a Strong Work Ethic and 5 Ways to Improve Yours

Too many people think taking shortcuts at work is the way to go

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2023 Leaders.com - All rights reserved.

Search Leaders.com