COVID-19 Impacts - Germany

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Part
01

Economic Outlook - Germany

Economists predict that Germany will experience an economic recession post-COVID 19, leading to between 2.8% and 5.4% shrink in the GDP, but is expected to recover and experience growth of between 1% and 4.9% depending on whether the recovery will be V-shaped or U-shaped. In efforts to cushion the economy from the impacts of the pandemic and facilitate recovery, the country has approved a €750 billion economic stimulus package.

Current Situation in Germany.

“V”-Shape Recovery

  • According to forecasts, the corona virus will most likely dampen economic activity in Germany in the first half of the year, and followed by catch-up effects, giving rise to a pronounced V-shape post-pandemic recovery in this year.
  • The SVR expert panel central outlook is based on predictions that if economic activities ‘normalize by summer’, then Germany will experience a 2.8% drop in the Gross Domestic Product (GDP) in 2020.
  • If it so happens, a slow period characterized by delivery problems for intermediate goods, cutbacks on spending and a decline in domestic economic activities, among others, will be followed by a 3.7% expansion in 2021.
  • They further argue that a deeper 'V,' which implies extended long periods of isolation or halts in production, could lead to a deeper slump of 5.4% in GDP.
  • The deeper ‘V’ scenario in the economy is associated with a growth of 4.9% in Germany’s GDP.

"U"-Shape Recovery

  • In a “U”-shape scenario where contact restrictions and production halts continue beyond summer, Germany’s GDP is predicted to drop by 4.5% in 2020.
  • It will be followed by economic recovery in 2021 but will grow by just 1.0% during the year.
  • Other economists believe that a U-shape recovery is more likely in Germany’s case as the country draws about 30% of its GDP from the manufacturing sector. So maybe the case because the manufacturing sector is still in the contraction stage and may be slow in recovering, given that it is mostly export-oriented.
  • Economists' outlook of a U-shaped recovery is anchored on their perception of very low visibility on the effectiveness of alternative policy interventions that have been employed.
  • Additionally, supply chain disruptions could get worse by defaults in the upstream sectors, which is more likely as demand fallout worsens amidst expectations of more extended periods of lock down and social distancing restrictions.

Post-Virus Economic Stimulus Funding

Part
02
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Part
02

COVID-19 Impacts on Film and Movie Theaters - Germany

COVID-19 has had both a direct and indirect impact on the film industry and cinemas in Germany. Social distancing and closures of places where people tend to congregate (such as cinemas and theaters) has essentially shut down the ability of Germans to "go to the movies". Additionally, filming and production on movies has stopped and film festivals and galas have been either canceled or postponed. The German government and film industries have stepped in to assist financially in order to keep this segment of the cultural environment afloat, but with no end to COVID-19 and the restrictions in sight, it can be difficult for people in the industry to see how it will survive.

Effects of Social Distancing: Temporary Closure of Cinemas

  • The government of Germany requires closures and restrictions to be set at the regional level. Most of the measures that have been put in place are therefore focused on cities and regions, as opposed to the country as a whole. In all regions, however, the cinema industry (along with sporting events and nightclubs) is one of the first to close due to restrictions on group size.
  • Berlin and Cologne were the first German cities to mandate the closing of cinemas as of March 14th, 2020.
  • All German regions had already enforced some form of lock down by March 22nd, when Angela Merkel appealed to all Germans to heed the rules, maintain a two-meter distance between people, and avoid crowds.
  • Currently, social distancing guidelines and the subsequent cinema closings are in effect until April 19th (roughly one month from the first cinemas to close in the large cities of Berlin and Cologne). These guidelines and closings may continue beyond April 19th.


Cancellation, Changes to, and Postponement of Film Production and Events


German and European Film Industries Speak Out

  • The German Federal Film Board (the FFA), which provided over $60m in support to German media in 2018, is working with the government create measures to support the industry during the COVID-19 crisis.
  • The FFA has said that it will defer loans and tax payments without penalty, and that it will not pursue late payments at this time.
  • There is a great deal of concern that there will be pressure to "Break the Theatrical Window", a practice that requires a film to air in cinemas for a period of time before it is released for home viewing. Distributors are tempted to release new films directly to consumers rather than wait for cinemas to reopen.
  • Controversially, the FFA is considering possible online/home viewing alternatives for new films, despite having very strict rules on maintaining the theatrical window for all films that receive FFA subsides.

Financial Assistance from Germany and the Film Industry

  • There are over 1,700 cinemas in Germany, with over 4,800 screens. Estimates are that the cinema shutdown will cost around $19 million (€17 million) a week.
  • Germany's Box Office revenue from the weekend prior to the Berlin/Cologne cinema shutdowns were down 75% from the previous year. Obviously, that number has fallen to 100% now that cinemas are closed.
  • Many European countries are offering to assist their cultural institutions that have been shuttered by COVID-19. Germany has announced that it will offer unlimited financing through its development bank KfW to cinemas in order to stay afloat.


Part
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Part
03

COVID-19 Impacts on TV, Music, and Live Events - Germany

The COVID-19 pandemic has had a considerable impact on the entertainment industry in Germany. The outbreak has put on hold or canceled many television and film productions, concerts, and major live events.

Television

  • With the outbreak of COVID-19, German Television viewing duration has significantly increased from an average of 76 minutes per week (February 13-March 11) to 85 minutes per week (March 12-19). Furthermore, since households have more family members at home watching television, there are more television screens and devices at use.
  • However, although television viewing has increased, COVID-19 has caused long-term issues concerning television production and advertising.
  • German producers have become more financially liable because the German government has not officially banned gatherings for film productions. As a result, German television broadcasters such as ARD, RTL, ZDF, and ProSiebenSat.1 have made available financial resources to assist production companies.
  • Private sports broadcasters such as Sky Deutschland have announced that they are trying to settle an agreement with the German Football League over paying rights holders while the football league is suspended.
  • On March 17, contestants on the television show 'German Big Brother' were controversially told about the COVID-19 pandemic on live television. The contestants, who have been locked inside a house since February 10th, were shown video messages from their families and were able to consult with a doctor.
  • Leading German broadcasters such as NDR and RTL are making changes to live audience shows due to COVID-19. Shows will either continue without live audiences or will be canceled.
  • COVID-19 has also affected the film industry by halting the production of various films. The German film production company Constantin Film reported putting on hold the progress of 30 productions.


Music

  • Due to the COVID-19 pandemic, many concerts and musical events have been postponed or canceled in Germany.
  • The German musical performing rights organization GEMA has issued a two-stage emergency relief program to support composers, lyricists, and performers. The emergency fund estimated at more than €40 million will first be distributed to composers and lyricists who are affected by performance cancellations. Then, it will provide financial assistance for songwriters with individual difficulties.
  • Staatsoper Unter den Linden (The Berlin State Opera) has canceled all of its performances from March 11 to April 19, offering everyone who had already purchased a ticket the option of a refund. They have also developed an online platform that allows access to operas and symphony concerts through streaming.
  • For instance, in collaboration with the local broadcaster RBB, Staatsoper livestreamed a ghost performance on its website. The concert was attended by about 160,000 people from all over the world, showing the importance of culture during the COVID-19 crisis.
  • Pitchfork Music Festival Berlin, initially scheduled for May 8-9, has been canceled. The event was held by Pitchfork and promoters MCT, who announced the joint decision to cancel due to anticipated health concerns and travel restrictions resulting from COVID-19. All tickets for the event will be refunded.
  • The March edition of the Beethovenfest, a classical music festival that was to take place in Bonn from March 13 to March 22, has been canceled. For the time being, the fall edition of the Beethovenfest is scheduled for September 4 to September 27, but the dates remain subject to change depending on the COVID-19 outbreak.
  • On March 11, the British singer James Blunt performed in Hamburg's Elbphilharmonie without an audience due to COVID-19 concerns. The performance was broadcasted as a livestream free of charge.
  • Natalie Horler, singer of the German dance music act 'Cascada', tested positive for COVID-19 on March 24.


Live Events

  • On March 22, German Chancellor Angela Merkel announced a ban on all public gatherings of more than two people, except for some household and work-related gatherings.
  • It was announced on March 11 that all theaters, operas, and concert halls in Berlin will be closed until at least April 19.
  • Many important events in Rhineland-Palatinate have been canceled due to the COVID-19 pandemic, including concerts by the Koblenz Music Institute.
  • The DFL (German Football League) announced that Bundesliga and Bundesliga 2 have been suspended until April 30. The DFL held an Ordinary Assembly, in which they discussed adjustments in licensing regulations, the development of a medical task force, and the possibility of playing football matches without spectators for the remainder of the season. Three players have tested positive for COVID-19: Luca Kilian (Paderborn), Jannes Horn (Hannover), and Timo Hubers (Hannover).
  • Hannover Messe, a leading industrial technology fair, has been canceled for the first time in seventy-three years. Dr, Jochen Köckler, Chairmen of the Board of Management of Deutsche Messe, claimed the cancellation was a result of travel restrictions, bans on group gatherings, and COVID-19's impact on the economy and manufacturing industry.

Research Strategy

To complete this report, we analyzed media publications and articles to gather information on disruptions in the entertainment industry in Germany caused by COVID-19. Our research analyzed data to examine how television, music, and live event segments of the entertainment industry have been affected by the pandemic.
Part
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Part
04

COVID-19 Impacts on Automotive - Germany

The suspension of car production, masks and ventilator manufacturing, and the decline in car sales, and new registrations are some examples of impacts/changes in the automotive industry in Germany as a result of the COVID-19 pandemic.

Suspension of Car Production

  • It occurred due to a fall in demand on the automobile industry due to COVID-19 pandemic.
  • Bosch cut back its operation in its Germany locations from 25th March.
  • Kamux closed down its six showrooms in Germany.
  • Ford’s manufacturing site, Saarlouis in Germany, has halted production after WHO designated Europe as the new epicenter of the COVID-19 pandemic.
  • PSA Group that oversees Peugeot, DS, Citroen, Opel, and Vauxhall brands shut down its branches across Europe, among them Germany.

A Decline in Car Sales and Registration

  • Germany had a double-digit decline in new car registrations in February 2020. The decline is directly attributed to the pandemic.
  • It is expected that Germany, like the rest of Western Europe, will suffer a decline in light vehicle sales in 2020 which will lead to a reduction in new car registrations.
  • A 6% decrease in car sales is estimated in Germany due to the COVID-19 pandemic.

Mask and Ventilator Manufacturing

  • The Germany government requested car makers to help out in the manufacture of masks and ventilators to help mitigate the COVID-19 pandemic.
  • The Volkswagen group committed to providing about 200,000 FFP-2 and FFP-3 protective masks for public health protection.
  • Volkswagen has assembled a group to research on the use of 3D printing technology in the manufacturing of essential medical equipment to fight the disease.
  • Daimler is seeking ways in which it can help the government of Germany in its effort to fight the pandemic.

Research Strategy

To find information about examples of impacts/changes in the automotive industry in Germany as a result of the COVID-19 pandemic, the research team consulted auto surveys, industry expert analyses, and reliable articles and websites. A factor was considered an example of impact or change if it has or is altering the regular operation of companies within Germany’s automotive industry. Based on the criteria and from these resources, examples of impacts/changes in the automotive industry in Germany as a result of the COVID-19 pandemic were identified to include the suspension of car production, masks and ventilator manufacturing, and the decline in car sales, and new registrations.


Part
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Part
05

COVID-19 Impacts on Travel and Hotels - Germany

In Germany, the tourism industry employees over 3 million people, according to the government commissioner for tourism. Due to the threat of COVID-19, state prime ministers and German Chancellor Angela Merkel agreed to ban public gatherings of more than two people and close schools, restaurants, shops, and museums. As a result of these strict guidelines and travel concerns, hotel occupancy and revenue has dramatically declined, travel and hotel industry events have been postponed or canceled, major tourist destinations have shuttered their doors for the first time in years, and flight cancellations and border closings have brought domestic and international tourism to a standstill.

Hotel Revenue and Occupancy

  • Since the beginning of March, hotel occupancy in Germany has decreased by 36 percent compared to 2019.
  • According to Fairmas, many cities in Germany have seen a massive decrease in overnight hotel stays as compared to March 2019; overnight stays have decreased over 67 percent in Cologne, 62 percent in Frankfurt, and 43 percent in Berlin.
  • Cologne has lost over two-thirds of its hotel-room revenue due to postponed or canceled private travel, events, and business travel.
  • By the beginning of March, Berlin's revenue per available room had declined 56.8 percent.
  • As of the second week of March, Berlin, Cologne, Dusseldorf, Frankfurt, Hamburg, and Munich all reported below 50 percent occupancy rates.

Postponed or Canceled Hotel and Tourism Industry Conferences/Trade Fairs

  • At the beginning of March before stricter guidelines were put into place, German Health Minister Jens Spahn asked that all events with at least 1,000 attendees were canceled, though many event coordinators had already been proactive in making the decision to postpone and cancel large events to halt the spread of COVID-19.
  • The International Hospitality Investment Forum was postponed; it was set to take place in Berlin with 2,300 people expected to attend.
  • The Internationale Tourismus-Börse was canceled; it was set to take place in Berlin with 160,000 people expected to attend.
  • The Light and Building 2020 conference was postponed; it was set to take place in Frankfurt with 220,000 people expected to attend.
  • On the date the Light and Building 2020 conference was supposed to start, Frankfurt's hotels hit a 73.7 percent occupancy decline.

Closure of Major Tourist Destinations

  • As of 2014, it was estimated that tourism generated 258 billion euros for Germany, contributing 8.9 percent of the country’s GDP.
  • The Hofbräuhaus, a Bavarian tavern in Munich, closed on March 18, 2020, for the first time in 120 years.
  • Cologne Cathedral, which normally receives 6 million visitors a year, has closed for tourists and is open only to those who wish to pray.
  • All sights of the Bavarian Palace Administration, including Neuschwanstein Castle, which receives 1.4 million visitors every year and 6,000 per day during the summer months, are closed until at least April 19.
  • Germany's capital city of Berlin usually sees over 13.5 million tourists a year who crowd around public attractions and landmarks like the Brandenburg Gate, Checkpoint Charlie, and the East Side Gallery; now, these tourist destinations are empty.
  • Berlin's tourism has been severely affected by the closure of dance clubs and bars; normally, 3 million tourists fill the 280 venues annually, contributing $1.8 billion to the local economy and ensuring the employment of more than 10,000 people.
  • According to a minister in the Berlin city government, "One in six in Berlin got infected in a club."

Schleswig-Holstein Bans Tourists

  • On March 18, the German state of Schleswig-Holstein, which has 2.89 million inhabitants, closed its borders to all tourists and asked any tourists currently in the state to leave by March 19.
  • All hotels, boarding houses, and holiday apartments were ordered to be shutdown or no longer permitted to house tourists; all public events and private gatherings were canceled or postponed; and any non-essential restaurants and businesses were closed.
  • According to a 2015 report, the German Wadden Sea region, which includes Schleswig-Holstein and Lower Saxony, is the second most popular domestic holiday destination for Germans.
  • As of 2012, there were 9.3 million overnight stays and 12.8 million day trips to Schleswig-Holstein per year; the day visitors alone generated over 345 million euros annually.

Lufthansa Cancels Flights

  • On March 11, the German airline Lufthansa announced it would be canceling 23,000 flights between March 29 and April 24.
  • Lufthansa stated they expected further cancellations to be announced in the coming weeks.
  • As of March 19, Lufthansa offered only 20 percent of their scheduled short- and medium-distance flights and only 10 percent of their long-haul flights.
  • Twenty-seven thousand of Lufthansa's 35,000 cabin and ground staff were put on reduced hours; a wage-subsidy program by the German government will pay at least 60 percent of their usual earnings, and the airline will cover another 30 percent, amounting to 90 percent of their net salaries.
  • Top managers and board members of the airline will receive only partial salaries for at least six months.

Research Strategy

To provide examples of the impacts of the COVID-19 pandemic on the travel and hotels industry in Germany, we researched recent news articles, company reports, and industry analyses.
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Part
06

COVID-19 Impacts on Finance - Germany


Examples of impacts/changes in the finance industry in Germany as a result of the COVID-19 pandemic include a disruption at major banks leading to the closure of some branches and a decline in stocks such as the DAX index that suffered a historic plunge. Detailed information is below.

Disruption at Major Banks

  • The COVID-19 pandemic has harmed major banks in Germany. Banks have been forced to close some branches to restrict exposure of the COVID-19 virus to employees and customers.
  • For example, according to CityAM, the pandemic has disrupted the operations of Deutsche Bank by causing it to cancel events and split its teams all over the world. Bloomberg also states that a Deutsche Bank employee in Frankfurt contracted COVID-19, forcing the bank to split its trading and sales teams at the affected office.
  • The bank has stated that the economic fallout as a result of the COVID-19 pandemic may make it impossible for the bank to meet its financial targets. Deutsche Bank is currently at risk as it is in the process of undergoing a radical overhaul after years of experiencing losses.
  • Its CEO Cristian Sewing has led the bank through a €7. 4 billion turnaround that focused on corporate banking and a reduction in investment banking. The process involved the cutting of 18,000 jobs. Deutsche made losses of €5.7 billion in 2019, its fifth in a row.

Decline in Stocks

  • The finance industry in Germany has been hit with a decline in stocks due to the COVID-19 pandemic. Germany's DAX index has recorded a historic fall due to uncertainty over the spread of the Coronavirus.
  • Germany's leading index DAX was down 7.1% early on March 16, the first time this has happened quickly and drastically. The DAX failed to register over 9,000 points before the time of closing. The blue-chip index also dropped 40% to a five-and-a-half-year low. When trading ended, the DAX's 30 blue-chip companies "had shed 5.31%, floundering on 8,742.25 points."
  • Shares for Deutsche Bank have also dropped to a record low due to the crushing of the global stock market caused by Coronavirus. According to the Express, share prices in Deutsche Bank fell nearly four euros, which represented worse figures than the 2008 financial crisis.
  • To help out, the German government recently introduced unlimited credit for businesses. It pledged €1 billion to help in the fight against COVID-19.

A Rise in Savings Interest Rates

  • A third change in the finance industry in Germany as a result of the COVID-19 pandemic is the rise in interest rates. According to Deutsche Welle, as the coronavirus continues to spread, financial companies are currently looking for liquid funds to mitigate the effects of the virus. They are luring savers with interest rates of up to 1%.
  • Some financial services providers were offering "1.05% for a €10,000 ($11,168) deposit over 12 months. Savers depositing for six months were being offered around 0.5%."
  • The rise in interest rates is said to be a short-term trend and is being driven by banks and finance brokers that are interlinked with cash-needy industries such as those in the industrial sector.
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Part
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COVID-19 Impacts on QSR - Germany

Strict hygiene measures, increasing reliance on delivery, dwindling restaurant sales, business bankruptcy, and seeking government support are some examples of impacts in the quick-service restaurant (QSR) industry in Germany as a result of the COVID-19 pandemic.

Strict Hygiene Measures

Increasing Reliance on Delivery

  • McDonald's is asking its business partners to close their premises and only provide either in-house delivery or drive-in delivery with emergency personnel to ensure the safety of guests and employees. Additionally, Starbucks and Shake Shack are currently following similar paths and prohibit seating in their facilities.

Dwindling Restaurant Sales

  • Subway reported a 20% drop in sales due to COVID-19. The company has attributed reduced operating hours and increasing demand for out-of-home deliveries for the drop in sales.
  • According to a recent survey by the German Hotel and Restaurant Association (DEHOGA Bundesverband), more than 75% of German hotels, restaurants, and caterers reported a drop in sales due to the Coronavirus crisis. Further, 90% of businesses recorded a decline in new bookings, with an average decrease being 38%.
  • McDonald's Germany has reported that it caters to fewer customers than before, even with the increasing demand for drive-ins and home-delivery orders. The company also stated that its German branches are reducing the order volume, especially concerning grocery orders.

Going Bankrupt

  • Vapiano, a German chain serving Italian cuisine, declared itself insolvent on March 20. The company stated that coronavirus had a devastating impact on the restaurant chain, serving 33 countries with 200 stores and a workforce of 3,800 employees.
  • Further, Maredo is the second restaurant chain reporting the inevitability of bowing out. The 40 years old steak-house chain operates 35 restaurants in Austria and Germany and employs about 1000 workers.
  • On March 30, Toma Gastro GmbH in Ellwangen applied for insolvency, citing a fall in sales of more than 50% due to the Corona crisis. The company operates six restaurants along the A3, A6 and A9 motorways in a franchise system with the Burger King brand.

Seeking Government Intervention

  • The President of the DEHOGA stated that industry is urgently expecting state support in the form of quick-acting liquidity aids and support measures, as well as a reduction in VAT for Essen.
  • Vapiano has made an urgent appeal to the federal government for any aid packages meant to support businesses facing financial losses due to the COVID-19 crisis. The company suggested that with timely help from the government, it can withdraw its declaration of bankruptcy.

Support for Workers

  • The Bundesverband der Systemgastronomie (BdS) and the trade union Lebensmittel-Genuss-Gaststätten (NGG) recently announced the provision for short-time work benefits to employees of QSR restaurants affected by the COVID-19 crisis. Additionally, wages were increased to 90% of the old net income, projecting a positive impact on about 120,000 employees in the system catering industry.
  • Burger King launched its new campaign, "Hero Menu-You help, we give!," to honor the healthcare workers fighting the coronavirus by offering free Whopper Jr. with a small soft drink at the drive-in stores.
Part
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Part
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COVID-19 Impacts on Retail - Germany

As a result of COVID-19, the German retail industry is experiencing the following impacts: dramatic decreases in retail footfall, retail advertisements that speak to the outbreak, increasing adoption of online grocery ordering and delivery, increasing retail prices for staple German goods including pork and produce, and closure of non-essential retail combined with an expansion of supermarket operations.

Dramatic Decrease in Retail Footfall

  • Analysis of footfall traffic over two weekends in the wake of the COVID-19 outbreak in Germany witnessed dramatic declines.
  • Studies of shopping centers located in Frankfurt, Hanover, Stuttgart, and Cologne have seen footfall decreases dropping from 84,600 to 16,140 (Frankfurt), 72,400 to 14,170 (Hanover), 56,990 to 7,820 (Stuttgart), and 55,870 to 7,240 (Cologne).
  • This decline is the result of measures taken by the German government to require retail businesses to temporarily shut down in an effort to ensure social distancing in order to slow the spread of the disease.

German Retailers Are Publishing Ads in Response to the Outbreak

  • German retailers such as Edeka, Aldi, and Penny have created ads that are a "direct response" to the COVID-19 pandemic.
  • Overall, response to the ads among the German public has been very good.
  • These ads focus on making an emotional impact. Among Germans who viewed the ads, between 31% and 34% reported feeling intense emotions while viewing the ads. Comparatively, only 24% of Germans reported feeling the same when it comes to the usual German ad.
  • These ads have resulted in increases in brand recall, purchase intent, and brand favorability among the German people. For example, Edeka showed a 14% increase in brand recall, an 81% increase in purchase intent, and a 23% increase in favorability, whereas similar results have also been revealed for Aldi (15%, 84%, and 23%, respectively) and Penny (15%, 47%, and 35%, respectively).

First-Time Online Grocery Customers Expected to Increase

  • According to insights published by PwC, in Germany there is a high potential for the food and grocery retail segment to witness many first-time online grocery customers.
  • PwC suggests that many of these new adopters will make online grocery ordering a habit, particularly consumers among the older population.
  • As a result, the online share of food and grocery purchases is expected to increase to 2% in 2020, up from 1% in 2017.

Increasing Retail Prices for Staple German Foodstuffs

  • It's expected that the price of some key German goods will increase as a result of COVID-19. A primary example of this is the cost of pork products, as Germany is one of the "most prevalent producers of pork," according to IBISWorld, as well as fresh produce.
  • A combination of decreased pork production in China due to coronavirus and African swine fever has already been increasing pork prices globally, something which IBISWorld notes directly affects Germany.
  • Currently, pork prices are 35% higher than they were a year ago and German consumers will soon notice these price increases at the store.
  • Additionally, there is an anticipated shortage of fruits and vegetables in Germany, as European border closures have resulted in a shortage of Eastern European farmhands for spring harvesting and sowing.

Closure of Non-Essential Retail and Expansion of Supermarket Operations

  • On March 18th, the German government ordered all non-essential retail stores to be shut down. IBISWorld predicts that this will result in many retailers being forced to shut their doors permanently as many already struggle to stay afloat with low cash reserves. Obviously, the non-essential retail segment is expecting to see huge revenue losses for the 2020 fiscal year.
  • In response to this, the German government has been granting business loans and deferred tax payments through 2021, with loans totaling €25.0 billion.
  • As non-essential businesses are closing, supermarkets in Germany are extending their hours in an effort to meet the increase in demand. In addition, supermarkets have been increasing their delivery and hiring efforts.
  • This is the result of a significant increase in sales being witnessed by supermarkets and drugstores in Germany, especially as consumers hoard household and durable goods. Despite this, IBISWorld predicts that this boost in sales will be offset by an eventual decline in the near future.
Sources
Sources

From Part 02
From Part 03
From Part 04
Quotes
  • "The Volkswagen (VW) Group released a press statement on 20 March that they will be providing about 200,000 FFP-2 and FFP-3 protective masks for public health protection 'in the near future', in the first material delivery of health equipment by an OEM. "
Quotes
  • "In Europe, however, the impact has yet to translate into such dramatic downturns in new-car registrations. Data for February 2020, gathered for the major European markets from the respective industry associations, reveals that only Germany suffered a double-digit decline in February."
Quotes
  • "Ford’s manufacturing sites in Cologne and Saarlouis in Germany, and its Craiova facility in Romania, will halt production beginning Thursday. The company’s assembly and engine facility in Valencia, Spain has been closed since Monday, after three workers were confirmed with the coronavirus over the past weekend."
Quotes
  • "The German automaker that oversees the Mercedes-Benz brand said on March 17 it will stop all production in Europe for at least two weeks. The automaker cited global supply chains that cannot operate at their full capacity and said the precaution is also meant to protect its workforce from the virus' spread."
  • "The automaker that oversees the Peugeot, Citroen, DS, Opel and Vauxhall brands announced on March 16 all of its plants across Europe will shut down on a tiered schedule. On March 17, eight additional plants went offline; three other plants halted production on March 18 and two more on March 19. The plants are spread across France, Spain, the UK, Poland, Germany and other locations. "
Quotes
  • "Starting this Thursday, Volkswagen plans to shut down its assembly plants in Germany, Portugal, Slovakia and Spain for an initial period of two weeks. "
Quotes
  • "Overall sales in the region are estimated to decline by around 7%, mostly due to steeper declines in key countries like the UK (-5%), Germany (-6%), Italy (-20%) and Spain (-10%) – which together account for a majority of vehicles sold in Europe."
Quotes
  • "Kamux is closing its six showrooms in Germany as Berlin shuts all retail stores except for food, chemists and other necessary services. "