HDE: Retail sector calls for necessary reforms in 2026

The new year 2026 is off to a tense start for the retail sector. Continued rising costs and sluggish demand are shaping the retail landscape. According to the German Retail Association (HDE), the lack of economic recovery last year and the still subdued consumer sentiment are causing uncertainty in the industry.

According to the HDE, retailers are calling on the federal government to set a clear course for a noticeable change in economic policy in the new year.

“The year 2026 must be a year of reform. The federal government already has the right issues on its agenda. Now it’s a matter of bold and decisive 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 in government only briefly created a spirit of optimism. Today, there is no trace of that left. There is a lack of convincing answers to the macroeconomic challenges,” 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 remove bureaucratic hurdles as promised. Retailers should be able to concentrate on their actual tasks again. To do this, they need relief,” emphasizes von Preen.

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

“That would be a real step toward strengthening social partnership,” said von Preen.

The federal government must also instill confidence among consumers.

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

The federal government must take action here in 2026 and send clear signals to the economy and consumers that they can be relied upon.