Retailers pessimistic

Bleak outlook for Christmas business

Retailers expect Christmas business to be mixed. (symbolic image)(Bild: APA/GEORG HOCHMUTH)

Only 71 days until Christmas! Until then, many people will be out and about looking for presents, which naturally pleases local retailers. However, Christoph Teller and Ernst Gittenberger from the JKU are not overly optimistic about the future.

 

In their latest analysis, the two marketing and retail management experts from Linz have analyzed the assessments of Austrian retailers for the upcoming fourth quarter. They compare and comment on the expected developments around the Christmas business.

Difficult economic situation
"The assessments of managers in the Austrian retail sector reflect the current difficult economic situation. The overall economic recession continues to put pressure on the consumer mood of private households, who are increasingly reacting with 'fear savings', explain Teller and Gittenberger. This would also have a negative impact on the upcoming Christmas business, which is extremely important for a positive annual result in many sectors.

Not all countries are the same
In this context, it is interesting to note that in 18 out of 25 EU countries (no data available for Luxembourg and Ireland), the outlook for the fourth quarter and therefore for Christmas business in 2024 is positive. In addition to Austria, the outlook is rather gloomy in Hungary, Belgium, France and, above all, Germany.

No surprise
"The negative outlook from Austrian retail managers is not surprising. The economy as a whole remains in recession, the retail economy - especially in non-food retail - is not picking up and there is no sign of a recovery in consumption despite rising wages and falling inflation," says Christoph Teller.