Many market traders are experiencing difficult times. After exceptionally high sales during the Corona period, the number of visitors to weekly markets is declining. The industry still has a problem.
The rising prices and the thrift of many consumers are putting a strain on traders at weekly markets in Germany. In 2023, sales nationwide fell by 6.5 percent compared to the previous year, adjusted for inflation, and in some federal states such as North Rhine-Westphalia even by more than 10 percent. This is evident from official statistics. The industry’s revenues fell significantly more than those of the retail sector as a whole, which had real sales of 3.3 percent less.
“Food stalls and markets primarily sell food that experienced particularly high price increases in 2023,” said trade expert Marcel Schorsch from the Federal Statistical Office. The products are generally more expensive, “so as prices rise, customers have looked for cheaper alternatives.” Discounters in particular have recently benefited from the fact that many consumers have switched to cheaper alternatives. Among other things, they recorded a significant increase in organic products.
Prices rise, volume sales fall
According to Hans-Christoph Behr from Agrarmarkt Informations-Gesellschaft, the weekly markets owe their sales primarily to rising prices. Volume sales and the number of households shopping there are declining significantly. According to data from market researchers GfK, in Germany only 1.1 percent of consumer spending on fresh foods such as fruit, vegetables, potatoes, meat, meat products, poultry, eggs, cheese, bread and pastries went to weekly markets. “The industry as a whole has lost a lot of its importance over the past 30 to 40 years. The markets are popular among the population, but many people don’t go there at all. The customer base is also very old,” says Behr.
Sales boost in the Corona period
The Federal Association of Showmen and Market Merchants (BSM) sees another reason for the slump in business, namely normalization after the Corona period. In the years 2020 to 2022, the markets recorded an extraordinary increase in sales, said BSM spokesman Olaf Lenz. “Many customers have preferred to do their shopping outdoors to reduce the risk of infection.” However, after the pandemic, consumers changed their shopping habits again. According to Lenz, the level before Corona has now been reached again.
Less active market people
The association does not see a fundamental existential crisis for the weekly markets. Demand and consumer behavior are stable in the long term. There are still problems on the supply side. According to BSM, the number of active market traders is falling. “Fewer and fewer young people want to take up this profession. It means long working hours in the open air, and the market stall has to be open even in unfavorable weather conditions,” said Lenz. Because there is a lack of staff, it is often not possible to continue operating businesses when someone retires. According to the BSM, there are around 40,000 market traders nationwide. The number of markets is relatively constant, but many have shrunk in recent years. The association did not provide any figures.
Competition with supermarkets and discounters
Sven Schulte from the North Rhine-Westphalia Chambers of Industry and Commerce is convinced that weekly markets have a future. “People don’t just go there to get supplies. A market is always a meeting place and has a social function,” said the political spokesman. The demand for high-quality food is also high. Nevertheless, Schulte sees stronger competition. “Supermarkets and discounters now also offer many regional and sustainably produced products.” The weekly markets should not thin out too much. “If at some point there are no longer 30 or 40, but only 15 stalls, it will no longer be viable.”
According to a representative survey by the opinion research institute YouGov on March 5, 15 percent of people in Germany go shopping at a weekly market at least once a week, 14 percent at least once a month, 38 percent less often and 30 percent never.
Source: Stern
