Contractor Watch

German industry outlook brightens in mid-year report

by Syafiqa Hanis
German industry outlook brightens in mid-year report - german industry outlook
German industry outlook brightens in mid-year report

German mid-year industry figures suggest the sector is stabilizing after a turbulent start to the year. DIY stores in the country significantly improved their sales performance in the second quarter compared with the first few months. With a turnover of EUR 6.46 billion, the sector remained only marginally below the level of the same quarter last year; on a like-for-like basis, however, turnover rose by 0.8 percent.

Comparing the half-year results

For the first half of the year as a whole, there is still a slight shortfall of 0.4 percent compared with the first six months of 2025. On a like-for-like basis, however, turnover of EUR 10.99 billion was 0.3 percent higher than the corresponding figure for the previous year. The German trade association BHB published these figures, highlighting a divergence between the raw totals and the underlying performance metrics.

The improved performance in the second quarter is attributable, amongst other things, to the early heatwaves, during which demand for air conditioning units, fans and irrigation equipment rose significantly. In June alone, the sales spike was particularly noticeable.

While the raw numbers for the first half of the year show a minor decline, the like-for-like comparison suggests a more resilient consumer base. This metric strips out the effect of new store openings or closures, offering a clearer view of how existing locations are performing. The data indicates that the market is holding its ground rather than shrinking rapidly, even as external factors like weather patterns influence short-term fluctuations.

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It is often difficult to predict how these seasonal shifts will impact the broader economy, but for local business owners, a summer surge provides necessary cash flow during a traditionally slower period. The ability to pivot stock towards cooling equipment shows how adaptable these retailers must be to survive.

Market resilience and adaptability

The divergence between raw turnover figures and like-for-like sales offers a deeper look into the structural health of the German DIY market. Raw totals can be skewed by the physical expansion or contraction of the retail network, but like-for-like data provides a purer assessment of consumer demand at established points of sale. The fact that like-for-like sales managed to grow by 0.8 percent in the second quarter demonstrates that the core customer base remains active despite broader economic uncertainties.

External environmental factors played a decisive role in shaping the second quarter’s success. The early heatwaves struck a chord with consumers, driving immediate needs for thermal comfort and garden maintenance. As temperatures rose, the immediate requirement for air conditioning units and electric fans became urgent, while irrigation equipment saw a concurrent spike as gardeners attempted to protect their plants. This weather-driven demand acted as a catalyst, lifting sales figures in June specifically, when the contrast between indoor and outdoor temperature was most acute.

For the broader industry, the ability to react to these weather patterns is a critical component of business continuity. Seasonal weather often dictates the rhythm of DIY activity, creating periods of high intensity followed by lulls. Retailers that successfully anticipate these shifts—by stocking the right inventory of cooling devices before the heat arrives—are better positioned to maintain steady revenue streams. This adaptability ensures that businesses can weather the inevitable downturns that occur outside of peak seasonal windows.

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