Retail defies the crisis: sales plus despite uncertain times!

Retail defies the crisis: sales plus despite uncertain times!

The future of retail in Austria remains stable despite economic challenges. According to the current “economic stimulus retail” of the WIFO, on behalf of the trade association, domestic retail generated net sales of 77.2 billion euros in 2024, which corresponds to a nominal plus of 2.7% compared to the previous year. The positive development, according to wifo.ac.at , is particularly remarkable, since it takes place in a time of uncertainties and a multi-year recession. This shows that the industry remains robust contrary to the generally poor consumer mood.

Christmas business and consumer behavior

The Christmas business 2024 was better than expected, with an increase in sales of 4.6% compared to the previous year in December. This was followed by a solid November with +3.8%. Despite these successes, the consumer mood of households is reserved due to a continuing economic weakness and increasing unemployment ( ots.at ). Inflation attracted 3.3% in January 2025, among other things due to higher prices for budgetary energy and services. Nevertheless, the retail trade had a positive sales development, at least in the food sector, with an increase of over 4% in December.

However, the current market situation also shows changes in consumer behavior, in particular a trend towards online sales and increased use of vouchers and money gifts. These circumstances had an impact on sales peaks in December, which decreased compared to previous years. Traders are now faced with the challenge of adapting their strategies and better aligning themselves with the needs of consumers, especially since the importance of Christmas as a sales bringer decreases.