The German retail sector has called on the federal government to prioritise economic reforms and regulatory relief in 2026 as rising operating costs and weak consumer demand contribute to uncertainty for businesses across the industry.
According to the Handelsverband Deutschland (HDE), structural changes are needed to restore confidence among retailers and consumers and support the sector’s performance in the year ahead.
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Challenging retail landscape prompts reform call
The retail sector in Germany entered 2026 under pressure, with many companies still feeling the effects of a slow economic recovery and subdued consumer sentiment.
HDE President Alexander von Preen said the lack of a sustained post-pandemic upswing and disappointing holiday season results have left many retailers hesitant about future growth.
The association argues the government must deliver clear economic reform measures to ease cost pressures and stimulate demand.
Retail leaders emphasise that simple announcements are not enough; they want tangible action that helps businesses manage everyday challenges.
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By GlobalDataVon Preen said that while the government has placed important issues on its agenda, rapid implementation is now essential so that relief reaches both companies and households without delay.
Reducing bureaucracy and supporting business activity
One of the key policy priorities identified by the HDE is the reduction of bureaucratic hurdles that retailers face. The trade association warns that excessive regulation diverts time and resources away from core operations and hampers competitiveness.
Streamlining administrative requirements, it says, will allow retailers to focus on sales, customer service and investment.
The HDE also highlighted specific legislative issues, such as proposals to adjust the Entgelttransparenzgesetz (pay transparency law) so that companies bound by collective agreements are exempt from certain documentation obligations.
Such changes are seen by industry representatives as a way to strengthen social partnership and reduce compliance costs.
Restoring consumer confidence and economic momentum
Consumer confidence remains a concern for the retail sector. Despite a slight uptick in sentiment at the start of the year, the industry points to prolonged low consumer confidence and cautious shopping behaviour as factors holding back growth.
HDE leaders say government action must signal stability and support to consumers if spending is to pick up.
The call for reform echoes broader concerns in Germany’s wider economy about the need for structural change. Independent industry voices have expressed that without meaningful reforms, including reducing red tape and enhancing conditions for businesses, retail and related sectors may continue to struggle with slow growth and operational burdens.
The HDE’s appeal frames 2026 as a pivotal year for economic policy, urging decisive government measures that could help revitalise Germany’s retail landscape and improve prospects for businesses of all sizes.
