Crisis in the trade: Number of bankruptcies increases dramatically to over 1,000!

Crisis in the trade: Number of bankruptcies increases dramatically to over 1,000!

The trade industry faces challenging times. Commercial chairman Rainer Treelik explains that the industry is still in a crisis that is characterized by a significant decline in profitability. In 2024, Austria recorded an increase in bankruptcies by 18 percent, with a total of 1,085 companies Pleitegingen. This alarming situation meant that the number of employees in retail fell by 0.8 percent, which means almost 4,500 jobs less. Despite a slight increase in sales in certain areas such as electrical and online trading, wholesale with a decline of 3.4 percent is behind expectations. The total sales of trade lags in international comparison, in 20th place out of 27 EU countries, as reported by the Institute for Austria's economy (IFÖW).

salary negotiations and new regulations

In addition to the financial challenges, the collective agreement negotiations for 2025 were successfully completed. The social partners agreed that the employees will receive 3.3 percent more salary in the coming year. A further increase of 0.5 percent above the inflation rate is agreed for 2026, with the possibility of resuming new negotiations for inflation of 3 percent or more. The apprenticeship remuneration increases from 880 to 1,000 euros in the first year, which corresponds to an increase of 14 percent, as the press reports.

Despite the positive output of the talks, Treis is demanding from politics to take clear measures to stabilize the industry and to control the costs of energy and rents. Interior to the current discussion revolves around the importance of the upcoming Christmas business and the challenge of remaining profitable at the same time. In view of the economic framework and the 飙升 of inflation, the trading companies are exposed to enormous pressure, while trying to stimulate consumers' lust that is currently reserved.