HDE: Retail sector demands necessary reforms in 2026

The new year 2026 is starting off tensely for the retail sector. Further rising costs and subdued demand are shaping the retail landscape. According to the German Retail Federation (HDE), the lack of an economic upswing last year and the still-damp consumer sentiment are creating uncertainty in the industry.

For the new year, the retail sector is demanding clear policy decisions from the federal government to ensure a noticeable shift in economic policy, according to the HDE.

„2026 must be a year of reforms. The federal government already has the right issues on its agenda. Now it’s about bold and determined implementation so that the announced relief measures quickly reach businesses and households,“ said HDE President Alexander von Preen.

In the retail sector, disappointment prevails after the turn of the year, both with regard to the past Christmas business and the first months of the new federal government.

„"Unfortunately, the change of government only briefly created a sense of optimism. Today, there is no trace of that left. Convincing answers to the overall economic challenges are lacking," said von Preen.

The HDE warns against losing sight of structural reforms such as reducing bureaucracy.

„"The retail sector is counting on the federal government to reduce bureaucratic hurdles as promised. Retailers should be able to concentrate on their core tasks again. They need relief to do so," von Preen emphasizes.

One way to reduce bureaucracy and strengthen collective bargaining would be to implement the Pay Transparency Act in such a way that companies bound by and applying collective agreements are exempt from the documentation requirement.

„That would be a real step towards strengthening social partnership,“ said von Preen.

The federal government must also foster confidence among consumers.

„Looking at consumer sentiment in Germany, 2025 was a lost year. It recently remained at the unsatisfactory level at which it started last year. That is worrying,“ warns von Preen.

This is where the federal government needs to focus its efforts in 2026 and send clear signals to businesses and consumers that it can be relied upon.