Small retailers in/out of the crisis in Germany – Re-inventing Retailing

Anhalt University of Applied Sciences, Department of Economics and Business Management, 06406 Bernburg (Saale), Germany

Abstract

The year 2020 required many changes in all areas of life as a result of the Covid-pandemic. Both privately and professionally, we had to deal with new challenges. The economy in Germany and especially the in-store retail sector was affected severely by the lock-downs. Small retail businesses are especially threatened because of their low financial reserves and many insolvencies are imminent. This is very dramatic because, on the one hand, many livelihoods are directly linked to these small retailers. On the other hand about 94% of the sectors are currently so called micro or small enterprises with less than 10 or 50 employees and an annual turnover under 2 or 10 million euros. These “local shops” are a characteristic of city centers and important for the economic stability and diversity of the country. To support these businesses, the state has introduced various direct financial aids and indirect ones such as short-time work or guarantees. Regardless of the difficulties associated with applying for and receiving aid, it is also the responsibility of retailers to use change management skills to develop their own solutions. Covid has now dramatically shown where unused potential exists, e.g. through the implementation of multi-channel or hybrid business models. As dramatic as the situation is, it should also be used as an opportunity to increase innovative skills and to take a purposeful approach to the transformative process.