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People are buying less despite rising incomes

Consumer reluctance to spend is only slowly subsiding

(Bild: Wenzel Markus)

Every year, the Institute for Retail, Sales and Marketing (IHaM) at Johannes Kepler University Linz surveys the consumer climate in the country. Following a low point in July 2022 (-34% points), consumer sentiment rose only modestly in the previous year up to September. Retailers want to counteract this with promotions and private labels.

Since autumn 2023, there have been signs of a slight easing of consumer restraint in the retail sector. In April 2023, 30% of consumers (aged 18 and over) were still buying fewer retail goods, but this figure is now "only" 22%.

Promotions and private labels are booming
It is becoming apparent that younger consumers in particular are turning to cheaper own brands, while older consumers are increasingly opting for promotional products. "The all-clear cannot yet be given for the retail sector. Despite rising real incomes, pessimism still prevails among consumers," says Ernst Gittenberger from IHaM.