Abstract
The year 2020 required many changes in all areas of life as a result of the Covid-pandemic. Both privately and professionally, we had to deal with new challenges. The economy in Germany and especially the in-store retail sector was affected severely by the lock-downs. Small retail businesses are especially threatened because of their low financial reserves and many insolvencies are imminent. This is very dramatic because, on the one hand, many livelihoods are directly linked to these small retailers. On the other hand about 94% of the sectors are currently so called micro or small enterprises with less than 10 or 50 employees and an annual turnover under 2 or 10 million euros. These “local shops” are a characteristic of city centers and important for the economic stability and diversity of the country. To support these businesses, the state has introduced various direct financial aids and indirect ones such as short-time work or guarantees. Regardless of the difficulties associated with applying for and receiving aid, it is also the responsibility of retailers to use change management skills to develop their own solutions. Covid has now dramatically shown where unused potential exists, e.g. through the implementation of multi-channel or hybrid business models. As dramatic as the situation is, it should also be used as an opportunity to increase innovative skills and to take a purposeful approach to the transformative process.
Highlights
The year 2020 required many changes in all areas of life as a result of the Covid-pandemic
The crisis induced by Corona affects the majority of the German economy, but micro-enterprises are affected, especially in the retail sector
Often there are no large financial reserves and the distribution channel is primarily focused on local, direct sales
Summary
The corporate structure in Germany shows a clear picture, as a total of 99.4% of companies are so called “KMUs” (Kleine und mittlere Unternehmen / small and medium-sized enterprises). Micro-enterprises take up the largest share with 81.8%. The crisis induced by Corona affects the majority of the German economy, but micro-enterprises are affected, especially in the retail sector. These represent the largest number of enterprises with about 79.6%. Micro-enterprises were already losing more and more market share before. Corona has accelerated this process and threatens the existence of many retailers. These little "shops", which invite people to spend time strolling and browsing in the city centre, are affected by the economic consequences of the crisis. In the stationary retail sector, the decrease in sales since the second lockdown in December has been persistent at around 80%, so that 52% of businesses reported that the impact would be so severe that, without further assistance, they might have to quit their business in 2021. [4,5,6,7]
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