Bankruptcies at a record high

Retail on the brink: third drop in sales in a row!

Turnover in the retail sector fell by 1.6% to around 307 billion euros in the previous year.

(Bild: BGStock72 - stock.adobe.com)

The Austrian retail sector is in the deepest crisis for years! The figures are alarming: a third consecutive drop in turnover, thousands of jobs cut and the wave of bankruptcies continues unabated. Industry representatives are now sounding the alarm and calling for urgent rescue measures from politicians. Otherwise, total disaster looms in 2025!

"For the entire Austrian retail sector, 2024 will mark the third year in a row of real declines in sales. We are still in the midst of a crisis, there's no denying it," says industry spokesperson Rainer Trefelik from the Austrian Federal Economic Chamber. The figures speak for themselves: turnover fell by 1.6 percent to around 307 billion euros. This is the third decline in a row - after a drop of one percent in 2023 and a dramatic slump of 3.6 percent in 2022.

The weak economy has not only hit wholesalers hard, but has also massively dampened the buying mood of consumers in the retail sector. People are saving wherever they can and are afraid to spend their money. As a result, companies are suffering - and the wave of bankruptcies is rolling in.

Industry spokesman Rainer Trefelik: "We are still in crisis." He therefore hopes that the upturn will finally come this year.

(Bild: SEPA.Media | Martin Juen)

Bankruptcies at record level - Kika-Leiner was just the beginning!
The number of insolvencies in the retail sector has reached a new record high: over a thousand cases were counted - 18 percent more than in the previous year. The most prominent victim of the crisis was the furniture store giant Kika-Leiner. But things are continuing at the same pace in 2025: the underwear chain Palmers has already filed for insolvency.

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

Grocery stores up, furniture retailers down
While grocery stores still recorded a nominal increase in turnover of 4.3 percent and drugstores one of four percent, things are looking bleak in other sectors. The reason: people need to eat and drink and clean themselves and their homes - but they are cutting back on major investments. The furniture trade plummeted by 9.4 percent. The sporting goods trade is also struggling with a decline of 5.2 percent.

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

The price trend in retail was moderate overall. Building and DIY supplies were even 2.2 percent cheaper, clothing 1.3 percent cheaper and online products 0.4 percent cheaper. Jewelry, on the other hand, became much more expensive. Market researcher Peter Voithofer from the Institute for the Austrian Economy (iföw) explains: "Remember that the price of gold rose significantly by over 20 percent last year, which was naturally reflected in the prices of wedding rings and ladies' bracelets."

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

Retailers have cut thousands of jobs
The slump in revenue has also left its mark on the labor market: Companies have cut staff on a grand scale. A drop of 0.8 percent may sound small, but in absolute terms, that's over 4,500 jobs that have been cut. Furniture retailers were hit particularly hard, followed by online retailers and electronics retailers.

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

Appeal to politicians: "Let the companies work!"
 Industry spokesperson Trefelik hopes for an upturn this year, but also makes an urgent appeal to the next government and the EU: "A reduction in non-wage labor costs would be an important factor - as would a reduction in bureaucracy at European level. Europe has lost its way administratively - with ever new notification and reporting obligations. Companies want to work - please let them work!"