Food Supply Bottlenecks in Germany Continue to Ease
Supply bottlenecks at German food retailers eased in April but are still a problem for many businesses, finds the latest ifo Institute survey. In April, 70.4 percent of companies surveyed companies reported bottlenecks, down from 77.7 percent in March. “Despite easing supply problems, food price pressure remains high and the majority of retailers expect prices to continue rising in the short term,” says ifo expert Patrick Höppner.
The easing is particularly pronounced in the consumer electronics trade, with 38.0 percent of the businesses surveyed reporting bottlenecks, down from 63.5 percent in March. In retail overall, 45.7 percent of the businesses surveyed were affected, down from 49.0 percent in March.
At the same time, the shortage of skilled workers remains a pressing problem for many food retailers. In the second quarter of 2023, 48.7 percent of retailers surveyed said so, down from 51.5 percent in the first quarter of 2023. “This shortage of skilled workers has also become more visible to many customers in recent months. Restricted operation of service counters and discussions about shortened store opening hours are examples of this. What’s more, these days people shopping at their local store will often see jobs being advertised,” Höppner says.
