Stationary retail fighting for its share of the pie in Austria

Published: 01 June 2016
Sales area density continues to decline in Austria, with a decrease of 2.5% in the last 2 years – and everything points to a continuation of this trend. Whereas sales area density was still at 1.7 m² per resident in 2015, a value of 1.5 m² per resident is forecast for the year 2020. That represents a disappearance equivalent to 210 football fields. The online sector is certainly profiting from this. According to RegioData Research, online turnover in Austria is expected to nearly double by 2020. But sales area is shrinking not just because of online retail – expansion activities are currently meager as well. Retailers’ expansion plans for 2016 are far below the levels of the last 10 years. In addition, smaller floor spaces are currently preferred, and this of course has an impact on the overall sales area density.
However, looking at individual retail sectors in detail, one can see a major outlier – the furniture sector. In the case of furniture, a considerable increase in sales area has been recorded, mainly as a result of expansion activity by the Lutz Group. In contrast, the largest declines have been in DIY, toys, and books. Insolvencies of major market players such as Baumax were particularly impactful.
Nonetheless, the fact remains that Austria still has one of the highest sales area densities in Europe, next to Switzerland and the Netherlands. Thanks to Austria’s high purchasing power, the country remains attractive for many international retailers. Austrians’ average purchasing power has been growing at a steady pace over the last few years and currently stands at over € 20,600 per resident per year.

Shop: Purchasing Power Data
Shop: Retail Addresses
Shop: Who is expanding in Austria
Download this file (0516_VFdichte_AT_EN.jpg)Download chart: Changes in Sales Area Density by Sector, 2015-2016

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