Childrenswear in Germany

2021 DEVELOPMENTS

Childrenswear records strong improvement in 2021

Childrenswear one of the categories in apparel and footwear that recorded a stronger improvement in demand terms following the sales dip registered in 2020. While most apparel products remained significantly lower than pre-pandemic levels in 2021, with expectations for a stronger rebound in 2022, overall volume sales of childrenswear were close to recovering due to less drastic declines the previous year.

C&A retains convincing leadership of childrenswear

Unlike some other apparel categories where H&M holds a slim lead, childrenswear continued to be led by C&A Mode GmbH & Co KG, the only player to hold double-digit value share, whilst also recording share gain and double-digit value growth in 2021. Its wide presence around the country and the reopening of non-essential stores in the spring encouraged many consumers to return to its outlets.

Apparel and footwear specialists display strong growth following reopening

2020 was a particularly difficult year for apparel and footwear specialist retailers as the channel had to close its doors for a long period of time, and even when stores were allowed to operate, various restrictions discouraged consumers from returning to higher levels. However, the wider reopening of businesses in 2021 and the implementation of Germany’s vaccination programme led to a significant improvement in store visits, especially for childrenswear as parents felt more confident regarding health and safety measures in place.

PROSPECTS AND OPPORTUNITIES

Baby and toddler wear expected to grow at slower pace over forecast period

Given the relative resilience of childrenswear sales during the pandemic, a full recovery by 2023 for volume sales is sooner than expected than for other apparel and footwear categories. Within childrenswear, baby and toddler wear is predicted to record the slowest retail volume growth when compared to boys’ and girls’ apparel.

Price competition to increase as category becomes more transparent

Apparel and footwear in Germany is highly competitive and price tends to evolve at lower rates when compared to other product categories regularly purchased by local consumers. However, despite the increase in prices witnessed in 2021, which is likely to continue in 2022 due to increased costs of transportation and manufacturing, the average unit price of childrenswear is predicted to remain below pre-pandemic levels (at constant 2021 prices) over the forecast period.

Younger parents a boost for e-commerce penetration of childrenswear

Childrenswear generates a high percentage of its revenues through store-based retailing. The wide presence of retailers such as Ernsting’s Family and KiK around the country offer convenience and confidence that until more recently, online alternatives did not.