Retail Expansion in Austria: Caution and Reluctance!
The number of distribution chains which are planning to expand in Austria this year grew slightly, however the planned locations are clearly limited.
The reason for this is the growing popularity of e-commerce as well as the limited availability of great locations. Additionally the commercial market in Austria is quite saturated. Nevertheless, 455 retail brands intend to expand this year.
The fashion industry is planning on opening the most stores and is still the fastest expanding indus-try, despite the overall rather weak expansion trend. Not only well known brands like H&M want to expand further, but also new brands want to set foot in Austria for the first time. The strong devel-opment of the fashion industry is mostly due to the ever-changing fashion trends and the constant appearance of new brands, which vanish just as fast. Around 140 fashion companies are seeking new locations in Austria this year.
Furthermore, the food and catering industry is very active as well. Especially food discounters are spreading rather fast, whereas they tend to choose their locations in the city area. The density of the chain catering network is also growing massively with both new concepts like Dunkin Donuts and Kentucky Fried Chicken, as well as already well-known, established concepts.