Retail association boss Rainer Will expects the extensive discount campaigns to continue: “The retailers need cash in the tills.”
The first week of discount battles after the lockdown is over. The balance is definitely positive, even if there was a “total failure” in many places. But even where the tills rang, a bitter aftertaste remains, as trade association CEO Rainer Will explains in an interview with “Today” on Sunday.
We had a strong week, but these sales volumes will not be sustainable. Will speaks of a “one-time effect” due to the long lockdown period. “We still hope for strong shopping days”, but the behavior of customers has changed significantly, also due to the discontinuation of the catering trade. The time of window shopping and spontaneous shopping is over, instead customers would shop in a targeted manner.
The economist also expects the discount battles to continue in the second week of opening. “The warehouses are still full of Christmas and winter goods. The discounts will continue because the price plays a decisive role alongside quality and advice,” Will continues. Because: Many customers would have had to tighten their belts due to the crisis.
The same applies to companies. Every fourth trader is insolvent, explains the trade association CEO. That is why every penny is fought bitterly: “The dealers need cash in the tills and must address every wallet!”
The state is also challenged. There is now an urgent need for help and application options for the 10,000 indirectly affected, such as the food wholesaler, which is still recording a 70 percent drop in sales due to the gastro shutdown. “Something has to be done,” demands Will. Many service providers such as beauty salons are also affected because there are currently no events.
Hence the urgent appeal to the federal government: “The trade must keep it open – permanently. It has proven that it is not a hotspot”. In addition to the immense budget gap caused by the elimination of VAT on closed shops, the fate of the 600,000 employees would also depend on it. Both dealers and customers now need one thing above all else: planning security.
