Supply Problems Worsening in German Retail
The closure of ports in China has exacerbated supply problems in Germany’s retail sector. In May, 80.1 percent of retailers complained that they will not receive all the goods they ordered. This figure was 67.1 percent in April, after peaking in December at 81.6 percent. This is the finding of an ifo Institute survey. “Many goods are not on the shelf, but are sitting in a container at a port in China,” says Klaus Wohlrabe, Head of Surveys at ifo. “Consumers thus need to have a certain flexibility when they go shopping.”
Two-thirds of retailers said the situation in China had further exacerbated existing supply problems.
For example, 100 percent of the toy retailers surveyed reported overdue deliveries. In addition, almost every DIY store and supermarket has the odd gap on the shelf. Bicycle dealers are missing some of the individual components they need to complete assembly of the bikes. The semiconductor and chip shortage is shrinking the range of options in electronic products.
“Retail is currently facing many challenges. Coronavirus restrictions have been almost entirely lifted, but inflation and supply shortages are dragging sentiment down,” Wohlrabe says.
