Austrian Retail Sector Hopes for ‘Christmas Miracle’

Austrian Retail Sector Hopes for ‘Christmas Miracle’

Image: APA/THEMENBILD/EXPA/LUKAS HUTER

 

The Austrian Trade Association is hoping for a “Christmas miracle” to strengthen the country’s retail sector, which continues to be heavily affected by the cost of living crisis, despite a recent decline in inflation.

Sales have been on the decline since 2022, according to association head Rainer Will.

A survey by Reppublika Research Analytics found that 80% of people in Austria plan to purchase their Christmas gifts during Black Week, which includes the events surrounding Black Friday and Cyber Monday. The week is expected to generate around €400 million in sales and marks the beginning of the Christmas shopping season.

“More and more people are taking advantage of these discount days, but they are spending less,” Will said.

The survey revealed that planned per capita spending during Black Week is highest in Vienna (€281). Tyrol and Vorarlberg (€266 each), as well as Lower Austria and Burgenland (€263 each), are near the national average, followed by Upper Austria and Salzburg (€262 each). The lowest figures come from the southern provinces of Styria and Carinthia (€252 each). According to the survey, women are most likely to buy clothing, while men tend to purchase electronics.

Will is placing his hopes on the Christmas markets, which he sees as the biggest opportunity to draw shoppers back to the streets. “They are the greatest chance to get people back into the city centres,” he said.

The survey also found that 29% of Austrians plan to visit several Christmas markets, with more than half (56.1%) intending to visit at least one. The most popular markets are, in order, those in Schönbrunn, Spittelberg, and Rathausplatz in Vienna, followed by the Salzburg Christkindlmarkt in fourth place.

If the Christmas season proves sluggish, the retail sector will need to focus even more on “process optimisation,” Will said. This would involve reducing retail space and accelerating digitalisation. Politically, the Trade Association is calling for stricter measures to combat “unfair online competition from the Far East.”

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