German retail insolvencies hit highest level since 2016

Insolvencies in Germany's retail sector reached their highest level since October 2016, credit insurer Allianz Trade said, recording 2,490 cases between August 2024 and August 2025.

Recent casualties included shoe retailer Görtz, fashion brand Gerry Weber and menswear chain Wormland. Fashion chain Esprit closed all stores this year due to insolvency, while home décor retailer Depot and discounter Kodi significantly reduced their branch networks.

Guillaume Dejean, an Allianz Trade industry expert, said he expected retail consolidation to continue, with insolvency numbers rising further but at a slower pace. He noted that this trend had already been visible in recent months, with a 13% rise in August 2025 year-on-year, after a 20% increase a year earlier.

The experts attributed this to slightly improved economic prospects.

Retail remains one of the most heavily burdened sectors in Europe, however, international comparisons offer some hope. Insolvencies have recently fallen in the Netherlands, the United Kingdom, France, Norway and Denmark, according to Allianz Trade.

Dejean said retailers were still grappling with structural changes to their business models that began during the coronavirus pandemic.

To withstand rising competition from large online marketplaces, they would need to invest more heavily in digital channels and modern technology, which smaller players often struggled to afford, he added.