Days of Growth in German Online Retailing

A new survey from the German retailers' association HDE predicts that online turnover in Germany will have doubled this year from the levels achieved in 2000. However, the year 2001 will be the last year to witness a treble digit growth rate according to the report.

This year's turnover is expected to reach DM 9.8 billion, representing just 1% of total German retail turnover. The forecast for the coming year is an online turnover of DM 16.62 billion. HDE analysts consider this slowdown in growth as "a normal development for a young market which shows dynamic development."

The strongest retailing sectors, i.e. food and clothing, still play a very minor part in online retailing. The survey shows that these sectors achieved a share under 0.15% and 0.5% respectively last year.

Only 22% of the companies surveyed achieve profits in online retailing, with that share dropping to 13% for those involved in food and clothing retailing via the Internet. However, surprisingly, 39% of all DIY retailers claimed that their online business is profitable.

According to HDE estimates, the top 10 e-retailers account for 30% of the online market in Germany. Holger Wenzel, managing director at HDE commented "Virtual retailing will become a standard form of retailing in some product sectoMRS Conference 2002 Info & Registrationl certainly not replace physical formats. The traditional retailers do not see electronic retailing as a threMRS Conference 2002 Info & Registrationher as a challenge." The association predicts that by the year 2010 e-retailing will account for between 5% and 10% of all retail turnover in Germany.

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.