Farewell to Michael's Toy Country: upheaval in Weimar!

Farewell to Michael's Toy Country: upheaval in Weimar!

The retail landscape in Germany faces profound changes that affect local retail in particular. A current example is the closure of the popular toy shop "Michael’s Toy Land" in Weimar, Thuringia, which is to be carried out by the end of December of this year. The owner, Michael Rott, looks back on 33 years of successful business, in which he was able to build up a loyal regular customer, especially among families and kindergartens. The reasons for the closure are diverse, but sales declines are at the top of the list during corona pandemic and the growing online trade. According to thueringen24.de, Rott offers 40 percent discount on the items to reduce the remaining stocks. In addition, he plans to donate to kindergartens.

The sad news of the closure is not unique. In 2023, according to the Germany (HDE) trade association (HDE), around 4,500 shops had to be closed all over Germany, a trend that began to close 5,000 stores in 2022. HDE President Alexander von Preen describes the situation as "dramatic". The number of business fell from 370,000 in 2015 to just 300,000. These developments are directly related to the changes that Corona pandemic had on retail. As reported ZDF today, the vacancy in city centers has become apparent since the lockdowns.

The causes of the decline

A central reason for this development is the influence of Corona pandemic, which is an existential challenge for many retailers. Retail is particularly affected, with gastronomy, cultural and leisure facilities also suffering. While the inner cities remained empty during the Lockdowns, online trading experienced an enormous increase in sales. The [Statista Post] (https://de.statista.com/themen/6217/ excavations-des-coronavirus-auf-den-einzelhandel/) shows that online trading rose 24 percent in April 2020, while inpatient shops collapsed in their sales figures. Consuming moods are also depressed by geopolitical developments, such as the Ukraine War. This could again have a negative impact on the already tense situation of the retailers.

In order to survive in this tense situation, Preen calls for adjustments to the rental models, especially in the form of sales -based rents, and investment incentives for cities to bring more life into the city centers again. Such measures could help reduce vacancies that only remain as shadows of the once flowering trade landscape.

A look into the future

Despite these challenges, there are also glimmer of hope. According to HDE, the retail trade will assume for 2025, but there is a skepticism among many dealers, as ZDF today. The loss of jobs, as with Michael Rott, is a painful episode not only for the employees, but for the entire community. It remains to be seen how the industry will adapt in the next few years and which new concepts and ideas will arise in order to counter the growing competition through online trade.