Has Black Friday Lost Its Luster? The Struggles of German Retailers in the Era of Constant Sales and the Temu & Shein Phenomenon

A regional city in Germany. The shopping street, usually illuminated with annual lights, is sparsely populated this year. Instead, what's glowing are the smartphones in the hands of the few people walking down the street. Displayed on the screens are the orange "Temu" and the pastel "Shein" logos.

Low-cost shopping apps from Asia are shaking the foundations of Germany's Christmas shopping season.

The destination of 263 euros has changed

According to research firm YouGov, the average amount Germans plan to spend on Christmas gifts this year is 263 euros (about 43,000 yen). While this number doesn't seem bad at first glance, the destination of this money is the issue. Already, about 12% of the population has purchased gifts from Temu, Shein, AliExpress, etc., and an additional 9% plan to do so.Offenbach News

Popular categories include fashion, Christmas decorations, toys, and household goods. Half of the purchases fall into the "up to 100 euros" price range, with a quarter in the "100–199 euros" range. This means that a significant portion of the gift budget is being absorbed by these apps, rather than just a "small trial."

The German Retail Association (HDE) estimates that Temu and Shein alone could generate up to 1 billion euros in sales in Germany from November to December.Offenbach News

While this is only a few percent of the total expected retail sales of 126 billion euros, it could be a fatal number for stores with low profit margins.

The world of "clothing" is particularly hurt

The fashion industry is the hardest hit. The German industry association BTE estimates that the rise of Asian shopping apps will result in the loss of about 3 billion euros in sales from fashion retail this year alone.Offenbach News

The clothes from Temu and Shein represent the extreme version of "fast fashion." Trendy items are added in ultra-short cycles, and new products overflow every time you open the app. It's not uncommon for a single piece to cost just a few euros. For young people, these services fulfill the desire to "try various things" rather than "cherish clothes."

However, behind the scenes, local boutiques and mid-range department stores are caught in a price-cutting competition while bearing "heavy costs" like rent and labor. Unable to withstand the decline in foot traffic, more stores are being forced to close or reorganize unprofitable locations.

Even "Black Friday fatigue" is occurring

Black Friday and Cyber Monday symbolize Germany's year-end shopping season, but this year, there's a cool atmosphere surrounding these "festivals." An IFH Cologne survey found that 30% to 50% of people don't find discount days like Black Friday appealing.IFH KÖLN

One reason is the perception that "with Temu or Shein, prices are always at Black Friday levels anyway." On the apps, coupons and flash sales are constantly available, making discounts a "daily occurrence." As a result, the impact of large sales held only a few times a year by German retailers is diminishing.

Yet people still gravitate towards cheapness—39% say "saving this year"

According to a survey by consulting firm Oliver Wyman, 39% of Germans said they would "spend less" this Christmas season.DIE ZEIT

Amidst high inflation, rising energy prices, and geopolitical risks cooling consumer sentiment, the "just cheap" message of Temu and Shein resonates strongly.

In YouGov's survey, reasons for shopping on these apps include

• an overwhelming selection (71%)

• constant discounts (54%)

• the fun of "treasure hunting" on the app (44%)
  among others.Offenbach News

The game-like point system and daily "gacha-like" coupon designs continue to stimulate the dopamine of the SNS generation. Comments like "Before I knew it, I had 10 items in my cart" and "It's a time thief, but I can't stop" might sound familiar to Japanese users as well.

The dichotomy of "recommendations" and "anxieties" flooding SNS

Discussions about Temu and Shein are polarized on social media.

On X (formerly Twitter) and Instagram, posts like "I got all my gifts before payday" and "Christmas gifts for three kids under 100 euros!" are shared, along with reels tagged with #TemuHaul and #SheinHaul showcasing purchases.Utopia.de

On the other hand, environmental influencers and NGOs sound the alarm on such consumer behavior with hashtags like #FastFashion and #Nachhaltigkeit (sustainability).

"That one click increases CO2 and labor exploitation"
"The cost of 'dirt cheap' is borne by the Earth and factory workers in the Global South"
are messages shared in German, English, and French.Instagram

Additionally, users who have purchased products report
"The clothes are cute, but they lost shape after two washes"
"The power strip sparked" "The cosmetics smell too strong"
highlighting concerns about quality and safety. Investigations have reported that products sold on Temu and Shein contained harmful substances exceeding legal standards,Wikipedia

and each time such news spreads on social media, debates about weighing "cheapness" against "risk" reignite.

The politics and regulations surrounding the "cost of cheapness"

The frustration on the retail industry's side is reaching its limit. HDE points out that about 400,000 parcels are shipped daily to Germany from Temu and Shein alone, criticizing the government for "unfair competition" in terms of consumer protection, tax, and environment.Offenbach News

At the EU level, there is a move to consider an additional charge of up to 2 euros per item for these platforms. This is to cover the inspection costs for the increasing number of "low-cost parcels."DIE WELT

Furthermore, the EU has launched a formal investigation into Temu over illegal products and dark patterns (deceptive UI design), and authorities in countries like France and South Korea are also investigating or suspending sales due to issues with harmful substances and safety.Vol.at

However, it will take time for regulatory nets to be established. Meanwhile, the speed of app proliferation is tremendous, with EHI's online market research showing Temu and Shein quickly rising to the top ranks of Germany's major e-commerce sites. Temu is said to have nearly quadrupled its gross merchandise volume by 2024, and Shein increased its sales by 18%.DIE WELT

Bankruptcy numbers at a nine-year high

Amid these structural changes, local retail bankruptcies are gradually increasing. According to insurance company Allianz Trade, the number of retail bankruptcies reached 2,490 in the year from August 2024 to August 2025, the worst level since 2016.Offenbach News

Of course, the causes are not only Temu and Shein. Rising energy prices, rents, interest rates, a decline in tourists, and the overall stagnation of the German economy are all contributing factors. However, every time consumers choose "just something cheap online," family-run stores on street corners are gradually being cornered.

It's not a binary choice between "app or arcade"

So, do consumers have to choose one or the other? In reality, many people lead a dual life.
On weekdays, they browse Temu on the commute train, and on weekends, they go out with family to Christmas markets or shopping malls. Online and offline are not opposing axes but entities competing for the same budget within the same wallet.

Retailers, too, cannot compete by maintaining traditional business models alone.

• Their own e-commerce and in-store pickup services (Click & Collect)

• Limited edition products in collaboration with local brands

• Providing "goods + experiences" like repair services and styling suggestions
  are necessary to demonstrate value beyond just being cheap.

The "small choices" we can make

On social media, hashtags like #SupportYourLocal and #KaufLokal are spreading in Germany. These posts include experiences of purchasing from local shops, such as "handmade candles bought at the Christmas market" and "a book found at a favorite bookstore," shared with photos.

Switching all purchases to local is not realistic. For those with tight budgets, ultra-low-cost options like Temu and Shein are literally a "lifeline."RETAIL-NEWS Deutschland

That's why, instead of "everything cheap," a more balanced consumption approach might be needed, such as "only local here," "long-lasting clothes from a brand," and "consumables from an app." Consciously choosing where the money from your wallet goes. This could be the first step in finding a modest balance between the neon lights of shopping malls and the orange logos on smartphone screens.

When looking at the presents under the Christmas tree, who’s life and what environmental impact is behind those boxes? In 2025, Germany is being confronted with such questions.