German Retailers Expecting Supply Problems into the Summer of 2022
Supply bottlenecks in German retail will continue well into the summer of 2022, finds a survey conducted by the ifo Institute. On average, companies in the sector expect the shortages to last another ten months. “The range of products on offer will be limited over the Christmas period and long thereafter,” says Klaus Wohlrabe, Head of Surveys at ifo. Bicycle retailers are the most pessimistic, anticipating 18 months of supply problems, while furniture retailers expect them to last 12.5 months. Toy retailers expect supply problems to persist for around 11 months, while DIY stores are predicting 10.3 months.
Overall, however, the number of companies with problems replenishing their stock has declined somewhat, from 74 percent to 60 percent. Among bicycle retailers, the number dropped from 100 percent to 89.6 percent, while among DIY stores, it dropped from 98.9 percent to 83.5 percent. “Those are still enormously high numbers,” Wohlrabe adds. “Global logistics is out of sync. Many deliveries are reaching Germany with significant delays,” he says.
The problems will also be reflected in prices during the Christmas season. A large number of companies have announced price increases.
