Retailers and Car Dealers: Clear Decline in Investments in 2009

The negative development of the overall economy has also been felt by German retailing. Although private consumption has been relatively good, turnover in numerous retailing sectors declined in the first half of 2009 and retailers are expecting this negative trend to worsen over the course of the year. The financing situation has also worsened. Access to credit has become more difficult and retailers must also cope with a higher tax burden in the wake of the corporate tax reform. In 2009 retailers will spend more than 10 percent less on buildings, equipment and other fixed assets than in 2008. Car dealers are expected to curtail their investments more strongly than in retailing as a whole. Large-scale enterprises will cut back their investments the least. They continue to plan to expand in Germany and abroad. Since the smaller market participants cannot keep up with this expansion because of their difficult profit situation, we can assume that the larger commercial systems will gain further market share.