Clothing Retail in Austria: More Space, Less Outlets

Although the number of clothing shops in Austria declined substantially in the last years, the sales area has continuously risen. Around 6 000 fashion outlets with a sales area of about 1,7 millions sqm can currently be found in Austria.

Especially in the years after the economical crisis in 2001 the number of outlets diminished drastically, in only 3 years about 600 outlets have been closed. At the same time the sales area went up. From the consumer`s point of view this development does not necessary mean more variety: the strong increase of sales area has been taking place mainly due to the expansion of large retailers like H&M, C&A or kik.

Austrians fashion retail sector is quite concentrated:. 73% of the turnover in the clothing retail industry was generated in 2008 by those 48 retail chains, which have more than five stores. These market participants also disposed of 65% of the total sales area.

Regarding the productivity in the fashion retail chain sector the turnover per sqm went down by inflation-adjusted 7% between 2003 and 2008. The average turnover per sqm in this sector was at about 3 000 euro in 2008.