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HDE, the German retailers association, is forecasting retail-sales growth of only 1.5% for the year, despite a first-half number almost twice that, "because of the risks", which it sees as price rises in electricity and petrol and a possible fallout from the euro crisis.The flashing light that worries economists most of all is the fall in capital investment.
One of the most vocal, the Association against Unfair Competition, is backed by more than 1,000 German retailers.
The demographic and economic trends that have brought misery to German retailers are in full view in Hanau, a working-class community east of Frankfurt.
For instance, it found that German retailers of fashion accessories work on mark-ups of roughly 2.5 times the wholesale price, whereas Italian ones apply a multiple of 2.15 and their French counterparts of 2.29.
This is putting considerable pressure on German retailers, who provide twice as much shopping space per head of population as their counterparts in Britain, a nation, supposedly, of shopkeepers.
Big German retailers like Metro A.G. and the privately held Aldi chain fought back with their own price reductions, creating intense pressure at a time when German consumers were being persistently stingy about spending money.
Similar(42)
Until Monday, only PVH and Tchibo, a German retailer, had.
So far only PVH, owner of Calvin Klein and Tommy Hilfiger, and German retailer Tchibo have signed up.
The German retailer Metro said its sales dipped 3.6 percent in 2009.
The German retailer Metro said its sales dipped 3.6 percent during 2009.
He recently took over Karstadt, a bankrupt German retailer, and knows Prisa well.
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