Retail decline and rising vacancies impact German city centers

Retail centers in German cities Lübeck and Braunschweig are facing significant challenges due to shifting consumer habits and economic pressures.

In Lübeck, the Green Party (Die Grünen) has issued an alarm regarding the city's downtown development. According to recent retail monitoring data, projected retail turnover for 2025 is expected to drop by 14%, a decline more severe than during the COVID-19 pandemic. Additionally, the vacancy rate in the city center is expected to rise to 20.5% in 2025, up from 13.4% in 2024. Local politicians are calling for more rapid and comprehensive action to prevent a downward spiral of declining attractiveness and foot traffic.

Similarly, Braunschweig is experiencing a transformation in its city center. While the area hosts over 700 businesses across 50 industries, including cafes and cultural venues, it faces increasing competition from online retail and rising costs for merchants. Local concerns have also been raised regarding mobility and accessibility, specifically citing high public transport costs and difficulties with parking as factors that diminish the appeal of visiting the downtown area.