Food prices in Austria: Open letter criticizes VKI study!

Food prices in Austria: Open letter criticizes VKI study!

The Fachverband Food Trade in the Austria Chamber of Commerce has contacted the Association for Consumer Information (VKI) to clarify the discrepancy between food prices in Austria and Germany. Christian Prauchner, the chairman of the federal committee, criticizes the poor analysis of the VKI and emphasizes that many factors that explain the price differences are missing in the study. These include, among other things, the high market concentration in the Austrian market, which leads to more intensive competition, as well as the geographical differences that bring higher costs through the extensive supply of smaller branches. The high energy prices and wages in Austria also contribute to the more expensive, as Prauchner emphasizes in his letter, which calls for a factual debate about fair prices. These details are missing in the evaluation of the VKI, which can lead to a distorted image of the food industry.

acquisition opportunities and cost pressure in the market

At the same time, a current study by McKinsey and Eurocommerce shows that the European food retail trade in 2023 suffered greatly from the cost pressure of inflation. Although inflation has dropped moderately, the pressure remains due to increased rental and labor costs. The survey determined that 75% of the food dealers are skeptical about market development, but only 36% expect further deterioration. The stabilized real wages and increasing consumer confidence give special hope, which leads to a return to the joy of consumption in some countries. The market shows a heterogeneous development - bargain hunters and those willing to buy are shifting in the individual countries. While in Germany customers perceive their own brands as qualitatively equivalent or better than branded products, many Swiss value attaches budgeting.

The food dealers are faced with the challenge of adapting to changed consumption habits and polarization of consumer requests. The creation of a balanced offer of affordable and premium products could be crucial for dealers in order to remain successful in this dynamic market landscape. Therefore, creative approaches, such as strategic partnerships and the adaptation of the product range to local preferences, are of enormous importance in order to meet the different needs of buyers. These factors and urgency to control the costs are imperative topics that will shape the industry in 2024 and beyond, as McKinsey illustrates in the study.

More information about the challenges and opportunities in the food retail trade can be found in the reports of ots.at and mcKinsey.com .