Transformation of the retail sector in eastern Germany after unification

Unification has had a dramatic impact on the retail sector. Significant transformations have taken place in the structure and organization of retail distribution, and these have been accompanied by uneven development of retail services in the new Lander. State restrictions on the ownership of retail services have been abolished and former channels of distribution, such as the consumer cooperative network which was well-established during the GDR period, have been substantially reduced. New forms of retail organization have emerged in the east with large-scale, highly organized retail capital set to dominate the sector for some time to come. There has not been close convergence between the retail systems of the eastern and western Lander. Admittedly, the quality and type of goods on offer in the eastern Lander match those available in the west, while western forms of retail organization now dominate retail systems in the eastern states. However, the provision of retail services in the east remains lower than the west in spite of the advances made in shop numbers, shop size, employment and sales since 1990. The equalization of service delivery, in this case consumer services, and service-sector employment between east and west remains a distant goal.