Austria’s retail sector saw sales rise by 2.7% in nominal terms and 0.9% in real terms in 2024, reaching €77.2 billion, according to the Austrian Retail Association.
The figures, published on Monday, exclude motor vehicles and fuel stations, with the Christmas period proving particularly strong. “Despite all the pessimistic forecasts, the festive season developed surprisingly well,” the association said.
Strong End to the Year
Sales growth gathered pace towards the end of 2024. In December, revenues increased by 4.6%, with real growth at 3.1%. November also saw gains, with sales rising by 3.8% in nominal terms and 2.9% in real terms.
Despite this, consumer spending remains subdued.
“Austrian consumers remain cautious, even though real incomes have risen,” said Rainer Will, Managing Director of the Retail Association. While easing inflation has helped boost confidence, rising unemployment is weighing on household budgets. “Given the challenging economic climate, the recent positive sales trend in retail is remarkable,” he added.
Job Market Struggles
The labour market has been under pressure, with job vacancies declining for several months. In the retail sector alone, the number of unfilled positions fell by 25% in December. Yet the industry – including motor vehicle sales – still has 9,339 vacancies across Austria, with many businesses struggling to recruit.
Consumer Confidence Dips
Although retail sentiment had been improving since November, the latest Retail Economic Report compiled by the Austrian Institute of Economic Research (Wifo) suggests consumer confidence has “noticeably cooled.”
In January, the harmonised EU Consumer Climate Indicator for Austria fell to minus 19.2 points. Germany has also seen a decline in consumer sentiment, though confidence there remains stronger at minus 11.9 points.
Outlook for 2025
The retail sector remains cautiously optimistic about the year ahead. “Expectations for 2025 are muted, but there are certainly positive signals,” said Wifo economist Jürgen Bierbaumer, who authored the study.
Wifo forecasts moderate economic growth of 0.6% in 2025 and 1.2% in 2026. Inflation is expected to fall to 2.3% this year, down from 2.9% in 2024, and should ease further to 2% in 2026.
Calls for Government Support
Retail leaders are now urging the government to act to secure a positive future for Austria’s 93,000 retail businesses and their 700,000 employees.. The Retail Association is calling for a reduction in red tape, an innovation push, tax relief measures and incentives to boost business investment.
