Retail in 2024: The big picture
In 2024, retail in Austria record modest retail value growth of 3%. While inflation stabilised to a healthier level following the energy crisis of 2022, consumers' willingness to spend remained cautious, resulting in a moderate recovery that slightly outpaced inflation.
A noticeable increase in bankruptcies and store closures in 2024
In 2024, the Austrian retail landscape faced significant challenges as companies continued to face rising costs in energy, logistics, and labour, which squeezed profitability. Many businesses, particularly in sectors such as apparel, footwear, homewares, and beauty, struggled to maintain viable margins.
Automation rises as retailers look for labour-saving solutions to remain competitive
As operating costs soared and profit margins tightened, many retailers in Austria turned to automation and labour-saving solutions to stay competitive. This trend was particularly evident in the rise of Automatenshops (self-service stores with only vending machines), which became more common in urban areas.
What next for retail?
Consumer spending in Austria is anticipated to rebound significantly across the forecast period. This positive outlook stems from several factors.
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Overview:
Understand the latest market trends and future growth opportunities for the Retail industry in Austria with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Convenience Stores
- Discounters
- Hypermarkets
- Supermarkets
- Traditional Grocery Retailers
- Apparel and Footwear Specialist Retailers
- Electronics and Appliance Specialist Retailers
- Health and Beauty Specialist Retailers
- Home and Garden Specialist Retailers
- Department Stores
- Variety Stores
- Warehouse Clubs
- Direct Selling
- Homeshopping
- Vending
If you're in the Retail industry in Austria, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Retail in Austria report includes:
- Analysis of key retail trends
- Detailed segmentation of offline and online retail sales
- Historic channel sizes (retail value sales, outlet counts, and selling space)
- Company and brand market shares (retail value sales and outlet counts)
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Retail in Austria?
- Which are the leading retailers in Retail in Austria?
- How are products distributed in Retail in Austria?
- How is the rise of e-commerce and the expansion of modern grocery retail impacting traditional retail?
- How significant are discounters and private label in Austria?
- To what extent are sales shifting towards digital channels?
- What is the long-term outlook for bricks-and-mortar?
- How is macroeconomic and political uncertainty affecting the retail industry?
- What types of retailers are seeing the fastest growth in digital sales?
- What is the future of retail?
Retail in Austria
Retail in 2024: The big picture
A noticeable increase in bankruptcies and store closures in 2024
Automation rises as retailers look for labour-saving solutions to remain competitive
What next for retail?
Informal retail
Opening hours for physical retail
Seasonality
Christmas
Back to School
DISCLAIMER
Convenience Retailers in Austria
KEY DATA FINDINGS
Convenience store that offer longer opening hours support retail value growth in 2024
Rewe International AG improves its presence with Billa stores at forecourt retailers
Grocery retail giants experiment with new retailing formats in Vienna
Forecourt retailers will continue to benefit from their unrestricted opening hours
Nah & Frisch stores will respond to challenges by integrating self-service machines
It is unlikely that 7-Eleven will enter the market across the forecast period
Supermarkets in Austria
KEY DATA FINDINGS
Supermarkets lose share to other retailers, including discounters and hypermarkets
Rewe is increasingly losing share to leading player Spar
M-Preis is challenged by consumers rising price-sensitivity in Austria
Challenges for supermarkets is set to include the rising popularity of hypermarkets and discounters
A moderate outlook is projected for Unimarkt due to several setbacks
Players are set to utilise digital technology in response to high labour costs and staff shortages
Hypermarkets in Austria
KEY DATA FINDINGS
Hypermarkets benefit from the trend towards one-stop shopping
Interspar retains its lead with a wide product assortment including unusual goods
Rewe stagnates as Billa Plus hypermarkets lose share in 2024
A lack of store expansion is expected to challenge growth prospects
Interspar will offer a wide range of foodservice options to gain consumer attention
Rewe is set to continue collaborating with local merchants to optimise profitability
Discounters in Austria
KEY DATA FINDINGS
A high level of price sensitivity continues to drive growth for discounters
Lidl continues to record above-average growth as it improves its reputation
Hofer retains its top spot in discounters with a strong lead ahead of Lidl
Strong growth prospects for discounters as consumers appreciate appealing price-quality ratios
Discounters invest as stores prepare for the deposit return systems
Discounters expected to launch self-service checkouts to reduce operating costs
Small Local Grocers in Austria
KEY DATA FINDINGS
There are challenges operating profitable grocery stores in rural areas
Leading player denn’s faces challenges, however it has a lack of real competition
Ethnic grocery stores become negatively impacted by rising price sensitivity
Moderate outlook as small local grocers will face rising competition from supermarkets and discounters
Growth prospects for denn’s is expected to be limited across the forecast period
Modern health food store My Drogery Martin, may expand across the forecast period
General Merchandise Stores in Austria
KEY DATA FINDINGS
Solid growth for department stores driven by tourists visiting Austria
Strong growth for variety stores which offer a wide range of affordable products
Action defends its lead in variety stores and the overall competitive landscape
New developers are set to build on the Lamarr department store site
Moderate outlook for department stores as the industry faces challenges
The positive outlook for variety stores is expected to be driven by ongoing expansions
Apparel and Footwear Specialists in Austria
KEY DATA FINDINGS
Moderate retail value growth as price sensitivity and second hand goods impact buying habits
Pepco exits the market citing a lack of profitability as the key reason
The footwear specialists sector continues to see changes as players leave the market
Sustainability and the rise of second-hand goods is expected to shape consumer purchasing behaviour
Despite economic challenges, affordable and sustainable options are set to gain ground
Second-hand clothing will place further pressure on apparel and footwear specialists
Appliances and Electronics Specialists in Austria
KEY DATA FINDINGS
The weak real estate sector is a key challenge for a stronger performance in 2024
The concept of smaller stores helps Media Markt to expand in 2024
The shop-in-shop concept becomes more common, increasing direct-to-consumer sales opportunities
The trend towards sustainability and repairs is set to challenge sales across the forecast period
Media Markt is expected to place increasing pressure on the competition with its smaller store concept
A rising drive for sustainable consumption may challenge future retail volume sales
Home Products Specialists in Austria
KEY DATA FINDINGS
Slight recovery for homeware and home furnishing stores as delayed purchases are bought
Market leader XXXLutz KG extends it lead in homewares and home furnishing stores
The brands Depot and Interio face challenges throughout 2024
Ongoing growth is predicted for home improvement and gardening stores
The expansion of pet stores and superstores is likely to remain limited over the forecast period
Strong growth potential for Ikea as younger consumers are expected to embrace the retailer
Health and Beauty Specialists in Austria
KEY DATA FINDINGS
Beauty specialists continue to face the challenge of more affordable drugstore options
Fielmann retains leadership in optical goods stores as it focuses on its expansion
Dm-Drogerie retains its lead while attracting consumer attention through price reductions
The beauty specialist channel will face rising competition from retail e-commerce
The strong expansion of sehen!wutscher is expected to continue shaping the optical goods market
The long-term future of The Body Shop is uncertain as competition impacts the player
Vending in Austria
KEY DATA FINDINGS
The number of vending machines continues to rise in Austria during 2024
Vending machines and automation to tackle staff shortages and high operating costs
Changing working environments and hybrid working challenges sales of vending
Self-service and automation is set to play a significant role across the forecast period
Domestic player UKO Microshops AG Domestic has strong aspirations for the forecast period
The market leader café+co is set to retain its lead across the forecast period
Direct Selling in Austria
KEY DATA FINDINGS
Direct selling holds its place on the retailing landscape despite a difficult environment
Vorwerk continues to lead direct selling with popular vacuum cleaners and the Thermomix
Tupperware's Austrian subsidiary enters insolvency in 2024
Growth prospects for direct selling are set to fall across the forecast period
Vorwerk may have reached its peak as the player launches the Thermomix TM7
The boundaries between direct selling and retail e-commerce become increasingly merged
Retail E-Commerce in Austria
KEY DATA FINDINGS
Retail e-commerce records strong growth, outperforming offline retail
Food and drink retail e-commerce faces challenges as consumers are reluctant to leave grocery retailers
Foreign players dominate retail e-commerce through offering affordable goods
Growth in retail e-commerce is set to outperform growth in overall retail
Actions against Chinese e-commerce brands are not expected to challenge their growth
TikTok Shop could be the next rising trend in Austrian retail e-commerce
The following categories and subcategories are included:
Retail
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- Convenience Stores
- Forecourt Retailers
- Supermarkets
- Hypermarkets
- Discounters
- Warehouse Clubs
- Food/Drink/Tobacco Specialists
- Small Local Grocers
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- Department Stores
- Variety Stores
- Apparel and Footwear Specialists
- Appliances and Electronics Specialists
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- Home Improvement and Gardening Stores
- Homewares and Home Furnishing Stores
- Pet Shops and Superstores
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- Beauty Specialists
- Pharmacies
- Optical Goods Stores
- Health and Personal Care Stores
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- Bags and Luggage Specialists
- Jewellery and Watch Specialists
- Sports Goods Stores
- Traditional Toys and Games Stores
- Other Non-Grocery Retailers
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- Fashion Vending
- Health and Beauty Vending
- Appliances and Electronics Vending
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- Alcoholic Drinks Vending
- Hot Drinks Vending
- Soft Drinks Vending
- Tobacco Products Vending
- Foods Vending
- Home Products Vending
- Other Products Vending
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- Apparel and Footwear Direct Selling
- Personal Accessories Direct Selling
- Eyewear Direct Selling
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- Beauty and Personal Care Direct Selling
- Consumer Health Direct Selling
- Tissue and Hygiene Direct Selling
- Appliances and Electronics Direct Selling
- Drinks and Tobacco Direct Selling
- Foods Direct Selling
- Home Products Direct Selling
- Other Products Direct Selling
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- Apparel and Footwear E-Commerce
- Personal Accessories E-Commerce
- Eyewear E-Commerce
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- Beauty and Personal Care E-Commerce
- Consumer Health E-Commerce
- Tissue and Hygiene E-Commerce
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- Consumer Appliances E-Commerce
- Consumer Electronics E-Commerce
- Toys and Games E-Commerce
- Drinks and Tobacco E-Commerce
- Foods E-Commerce
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- Home Care E-Commerce
- Home and Garden E-Commerce
- Pet Care E-Commerce
- Other Products E-Commerce
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- First-Party (1P) Marketplace E-Commerce
- Third-Party (3P) Marketplace E-Commerce
- Grocery E-Commerce
- General Merchandiser E-Commerce
- Apparel and Footwear Specialist E-Commerce
- Appliances and Electronics Specialist E-Commerce
- Home Products Specialist E-Commerce
- Health and Beauty Specialist E-Commerce
- Leisure and Personal Goods Specialist E-Commerce
- Other E-Commerce Retailers
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Retail
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Retail research and analysis database.
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