The situation in retailing: Can government regulations help?

Increasing competition, the growing number of business terminations and market exits, particularly of smaller retail enterprises, as well as the current crisis of the KarstadtQuelle-Group have triggered a wide discussion on the future of retailing, also on the expediency or necessity of government regulation. For Holger Wenzel, Federation of German Retailers, government regulations should not be "to the detriment of present competition in distribution". Also Dr. Uwe Christian Täger, Ifo Institute, sees the danger that government regulation, as a rule, "has more or less negative side effects on genuine competition in product distribution". Prof. Edda Müller, Verbraucherzentrale (Consumer Rights Centre), emphasises that measures are necessary for the stabilization of consumer confidence, while for Prof. Joachim Zentes, University of Saarland, "no additional government regulation is necessary but rather concerted efforts at various levels".