Lower Austria's trade: Bright spots in the Christmas business despite bankruptcies!

Lower Austria's trade: Bright spots in the Christmas business despite bankruptcies!

In 2024, trade in Lower Austria will be an exciting but challenging chapter. The economy is struggling, with 216 bankruptcies, reinforcing the impression that the positive spirit of the holiday season is just a bright spot in a dark year. Well-known brands such as the decorative chain Depot and the 200-year-old fashion house Stift have gone bankrupt, which means that uncertainty in the retail sector continues. The furniture chain kikaLeiner also had to file for bankruptcy again in June after bankruptcy, reported noe.ORF.at.

Despite these negative developments, there were also positive things to report. During the Christmas business, retailers are satisfied with sales that, according to forecasts from the Institute for Economic Research (WIFO), could be seven percent higher than the previous year. Special events such as the Halloween sale and the “Black Friday” event not only contributed to the increase in sales, but also showed that stationary stores in particular are revitalizing. The final shopping Saturday of this year saw a one-fifth increase in customers compared to previous weekends Economy.at reported.

Challenges for trade

However, top sales representative Karl Ungersbäck raises concerns that the increase in sales cannot be viewed as a long-term trend. He criticizes the high cost structure and advocates a reduction in non-wage labor costs in order to help retailers get back on their feet. Bureaucracy is also seen as a burden, especially the confusing documentation requirements, which place a heavy burden on companies. With almost 1,000 bankruptcies across Austria this year, it is clear that urgent measures are needed to keep trading on track. The problems extend to all areas of retail, from the large chains to local specialists.

Although online is increasingly attracting buyers, sales development in stationary retail remains challenging. While food and book trade are showing positive developments, the entire retail sector remains in a mixed state. It remains to be seen whether the apparently improved figures in the Christmas business can prove successful in the long term.