German distribution channels of goods
German distribution channels of goods
In Germany, goods are retailed through many different channels, from grocery stores, department stores, discount stores, to markets, supermarkets, hypermarkets, shopping malls, etc., - the current largest retail channels are: discount stores, supermarkets and department stores. According to the German Retail Business Federation, in 2019, German discount stores recorded the highest net turnover with EUR 74.5 billion, followed by supermarkets with EUR 51.2 billion, department stores with EUR 18.5 billion, and hypermarkets with EUR 17 billion.
Table: German distribution system
|
Type |
Features |
Popular brands |
|
Department stores |
Non specialized department stores Located in the city center. |
Kaufhof, Karstadt, Kadewe |
|
Shopping malls |
Located in the city center Bringing stores together on areas of 10.000m2 to 50.000m2. |
Arcaden, Passagen, Carré |
|
Textile department stores |
Large stores specialized in textiles. |
Peek&Cloppenburg, H&M, C&A |
|
Specialized department stores |
Specialized department stores: for example electronics, DIY (Baumarkt) |
Saturn, Media-Markt, Conrad Electronic, Bauhaus, Obi, Hellweg |
|
Supermarkets |
Located in the city center Specialized in foodstuffs. |
Kaiser, Edeka, Rewe |
|
Beverage market |
Located in the city center Specialized in beverages |
Fristo, Hol'ab |
|
Organic supermarkets |
Located in the city center Specialized in organic products |
LPG-Biomarkt, Bio-Company, Naturkostladen |
|
Markets |
Fruit and vegetable markets, in the city center Open air or covered markets. |
Markthalle, frische Märkte |
|
Small local shops, grocery stores |
Located in the city center Often selling regional specialties (Turkish, Italian, Greek). |
Verdi |
|
Discounter |
Located in the city center and on the outskirts. |
Lidl, Aldi, Netto |
|
Cash & Carry |
Hypermarkets and fresh produce markets reserved for professionals. |
Métro, Frische Paradies, Beussel Market |
Source: Santandertrade, 2021
The system of distribution stores in Germany usually exists in both forms: traditional stores and online stores, in which the online form has increasingly developed.
Especially since the appearance of the COVID-19 pandemic, the trend of online consumption has also increased, which is reflected in the increasing number of online shopping orders and email orders. As a result, more and more retailers are turning to omni-channel sales strategy - both maintaining direct retail channels and developing e-commerce channels. Almost 40% of retail businesses in Germany now have an online shop on e-commerce platforms (Centurionlgplus.com). In 2020, e-commerce sales in Germany reached EUR 73 billion, increased by nearly 23% compared to 2019.
Currently, the largest e-commerce platforms of Germany are: Amazon, eBay, eBay Kleinanzeigen, Otto, Zalando, Notebooksbilliger, Cyberport, Bonprix, Idealo, MediaMarkt, Lidl, Thomann and Saturn... Foreign suppliers can access these channels to sell directly to German consumers (cross-border sales). The data shows that cross-border online shopping has become increasingly popular in Germany in recent years. According to a 2019 PwC study, around 70% of online shoppers in Germany ordered from abroad.
Source: "Business Handbook: Exploiting the EVFTA to import and export goods between Vietnam and Germany" - Center for WTO and International Trade
