In the 2024 inner city ranges industry report, IFH Cologne and BBE Handelsberatung examined products from seven product ranges that are particularly relevant to inner cities: these are fashion, CE/electrical, leisure, drugstore goods, home accessories, watches/jewelry and paper/stationery. The total sales volume has increased annually in recent years with the exception of 2020 and was 214 billion euros in 2023. However, the proportion of online sales in these product ranges is growing rapidly. Online retail grew by 9% between 2019 and 2023, while stationary sales fell by 2% during that time. In 2019, the online share of sales in downtown-relevant product areas was 28.6%. In 2023 the share was 37.5%. “Many of the purchases that customers used to drive into the city to do are now done online. It is no secret that stationary retail is increasingly experiencing problems as a result of these channel shifts. But we retail researchers must not stop drawing attention to this and taking a closer look. Because with more and more inner-city closures, our cities and the way we live and get together are changing due to retail,” says Lukas Reischmann, Senior Consultant Strategy at BBE Handelsberatung.
In particular, pedestrian frequencies have not returned to pre-pandemic levels. The frequency on Cologne’s Schildergasse fell by 4.2% in 2024 compared to 2019, and the frequency on Munich’s Neuhauser Straße fell by 6.8%. Since “If the downward trend in the city centers is to be reversed, trade, politics and business must work closely together. Because it’s a vicious circle: fewer shops attract fewer people to the city and fewer people in turn lead to less sales in the shops and further closures. Multifunctional city centers are already showing that they are attractive and inviting. We need places to linger and have face-to-face exchanges,” pleads Dr. Susanne Eichholz-Klein, member of the management team at IFH Cologne.
