Much to my excitement, I discovered that Germany has craft stores, too! (Not that I was assuming they didn't... it just wasn't something I'd thought a lot about before coming.) Even small towns seem to have one yarn/fibers store and a fabric store. I wasn't able to go into many, crafting not being the priority on this trip, but my fantastic host took me to this store in downtown Berlin. One side was all fabric (pictured) and the rest of the store continued with notions, yarn, patterns, papers, and books/kits!
And no, I didn't buy anything.