Germany's news in English

Editions:  Europe · Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

High rents threaten thousands of retailers

Share this article

High rents threaten thousands of retailers
Photo: DPA
10:14 CEST+02:00
Some 5,000 German retailers are on the verge of ruin due to rising rents, the HDE industry association told daily Neue Rhein Zeitung on Thursday.

“The rents are the problem that is breaking the necks of retailers,” HDE head Hubertus Pellengahr told the paper, encouraging landlords to lower costs to save companies from collapse.

“Five thousand medium-sized retailers will capitulate this year. No one is talking about them,” Pellengahr said.

The Woolworth department store chain – which took a further step toward collapse on Tuesday after a Frankfurt court said it had been placed under administration – is among these companies, he said. If the company owned by the British investment group Argyll Partners fails as it recently did in the UK, it would affect 9,700 workers in Germany.

Meanwhile German retailers Hertie and SinnLeffers have recently blamed their failure on high rents.

Industry expert Jörg Lehnerdt, from BBE Retail Experts, also plead for more flexible rents.

“It would be good if the property owners would require rents based on store profits,” he told the paper.

 
Jobs in Germany
Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

Four ways to lower your rent in Germany

It's often expats in Germany who find themselves paying unduly high rent, but that doesn't mean you can't get a better deal - even if you've already signed your tenancy agreement.