Half-year balance sheet

Styrian trade hit by cheap Chinese goods

Styrian entrepreneurs are particularly worried about the competition from the internet.

(Bild: stock.adobe.com)

The Styrian retail sector takes stock of the first half of the year: although the inflation-induced trough has been overcome, there are still dark clouds in the economic sky. There is still room for improvement in the retail sector, but positive outliers such as the watch and jewelry trade offer hope.

The time of hanging heads among Styrian salespeople may be over, but the general mood remains less than exhilarating: on Wednesday, the white-green retail sector took stock of the first half of the year - and it is characterized more by headwinds than tailwinds. Expressed in figures, the situation in the sector currently looks like this:

17.8 billion euros were generated in this country from January to June, in real terms - i.e. adjusted for prices - this interim result for the year corresponds to a drop of 2.8 percent. "Wholesale is still in crisis mode, but fortunately the upward trend in the automotive industry is continuing," reports Gerhard Wohlmuth, Chairman of the Chamber of Commerce Trade Division.

Division chairman Gerhard Wohlmuth (left) and economic researcher Peter Voithofer.

(Bild: Foto Fischer)

Retail trade not gaining momentum
There are major differences in the retail sector, which, despite a slight increase in sales, has to swallow a real minus of 1.3 percent and is not gaining momentum: the sales trend here ranges from plus 8.2 percent in the watch and jewelry trade to minus 2.5 percent in online sales. Why is the jewelry industry doing much better now? "The price of gold is continuing to rise, and the situation in the jewelry trade, which was under pressure for a long time, has returned to normal," analyzes Peter Voithofer from the Institute for the Austrian Economy.

Styrian entrepreneurs are particularly worried about competition from the internet. Mail-order giants from China are offering goods at rock-bottom prices. "These cheap stores are causing massive problems for retailers. There is a flood of parcels coming into the EU that are de facto unchecked - the issue has become a top priority in recent months. If there are legal framework conditions, they must be adhered to. We need fairness in competition," says Voithofer.

(Bild: Krone KREATIV/stock.adobe.com)

Fewer vacancies in the Styrian retail sector
What is the situation on the labor market? Of course, the bleak economy has not left the job market unscathed: the number of people employed in the Styrian retail sector has fallen by 0.8 percent to 73,522 - and the number of vacancies is also declining. "I therefore appeal to put reason before emotion in the collective bargaining negotiations. It won't work without relief for retailers," says Wohlmuth. A reduction in non-wage labor costs and taxes on overtime is needed.

Things are not looking much rosier across Austria: In the first six months, sector revenues actually fell by 1.6 percent compared to the previous year. Grocery stores and clothing retailers recorded a small increase. The biggest problem child is the furniture trade with a decline of 12.7 percent. The kika/Leiner bankruptcy is showing its consequences.

The fact that inflation is now lower is hardly easing the situation. "For three years, we had increases in wage costs of 20 percent," emphasizes retail chairman Rainer Trefelik. There is little scope for wage increases.