Germany remarkably leads the world in luxury fashion growth and spending. In a country known for its beer and thrifty citizens, German department stores are missing out on the shift to luxury brands. Overall spending at German outlets fell 3.9 percent since 2009 as the most affluent customers seeking luxury designer gear at single-label stores, driving luxury expenditure up by 16 percent to 12.9 billion euros last year.
“German department stores are not yet fully realizing the potential to exploit in the premium and luxury segments,” Mirko Warschun, head of A.T. Kearney GmbH’s consumer industries and retail practice in Munich, said. “Germany is not a booming luxury market like China, but it is a strong and resilient market in Western Europe.”
The growth of the German luxury market is booming and last year outpaced a 9 percent increase worldwide, according to figures from trade association, Meisterkreis. Department stores accounted for less than 4 percent of the total amount spend, Meisterkreis said.
So who is passing on inclusion on German department stores? Luxury designer brands, including Prada, Cartier. With the luxury movement sweeping the country, is it only a matter of time before stores adopt designers?
