Recovery in sight

Optimism despite declines in domestic trade

The retail sector is expected to recover slightly in the coming year - at least according to current forecasts.

(Bild: APA/HELMUT FOHRINGER)

Wholesale continues to struggle in Vorarlberg, but things are looking much better in the retail sector.

The retail sector in Vorarlberg will not see any sales growth in 2024. At -1.8 percent, the retail sector will post a negative balance in real terms for the third year in a row (after -1.2 percent in 2022 and -2.7 percent in 2023) - this is primarily due to the crisis mode in the wholesale sector. This is mainly due to the crisis mode in the wholesale sector, which posted negative figures last year in both nominal (-3.7%) and real (-3.5%) terms. The retail sector looks better: It closed 2024 in Vorarlberg with nominal economic growth of +4.0% (compared to the previous year) and was also able to exceed the previous year's level in real terms (price-adjusted) after declines in 2022 and 2023 (+2.4%).

The retail sector with the highest turnover by far - food retail - generated the highest nominal increase in turnover in a sector comparison (+5.2% compared to the previous year). Electrical, furniture and DIY supplies followed in second place (+4.0%).

In addition, the Vorarlberg retail sector is the only one in the whole of Austria that has not suffered a decline in employment, but on the contrary has recorded an increase (+0.3 percent). Currently, 22,923 people are employed in the Vorarlberg retail sector.

Positive forecasts
"We are confident that consumer confidence will continue to improve and that we will finally experience a stable and more successful retail year again in 2025," explained Carina Pollhammer, Head of Retail, on Tuesday. The forecasts for 2025 assume a slight economic recovery in the retail sector.