Austria’s retail trade has suffered a decline in turnover.
Figures presented yesterday (Tues) show that the domestic retail trade sector raked in 51.2 billion Euros in 2011, down by 1.7 per cent compared to the year before. Analysts explained that Austrians tightened their belts in the second half of 2011 – and underlined that this development was not a domestic phenomenon. They said that the tendency reflected a widespread decrease of the readiness to splash out large sums due to various uncertainties regarding the European economy.
Shoe shops struggled the most last year, according to Austrian economy officials. Statistics disclose that stores of that trade sustained a turnover decrease of 8.5 per cent in 2011. The sports equipment industry did badly as well (minus 3.9 per cent). Experts think that many people who initially planned to buy new winter sports devices refrained from doing so when the current winter started with unusually mild temperatures. The cold snap which has Europe in its grip at the moment could be beneficial to the domestic sports fashion and equipment shops’ performance of 2012 as many families may gear up for the approaching semester break.
Fashion (minus 3.8 per cent) and book stores (minus 2.7 per cent) performed not as well as they did in 2010 either. Book industry businesspeople said that a strong pre-Christmas performance helped stores to avoid more significant losses. Representatives to the clothing and book industry are cautiously optimistic for the future as more and more people are opting for gift vouchers at Valentine’s Day, Easter, Xmas and birthdays.
Austrian furniture stores suffered a 1.6 per cent decrease in turnover in 2011 compared to 2010. The only main business sectors which performed better last year than in 2010 were the home entertainment branch (plus 1.2 per cent) and stores offering perfumes and cosmetics (plus 0.5 per cent). Long-term price development data show that products like flat screen television and stereos are getting cheaper despite technological improvements while foodstuff, heating oil, car fuel and various other products and services are becoming dearer.
Austrian car dealers fared better last year than retail trade businesspeople. Statisticians said that 356,145 new cars were sold and registered in the country last year – more than ever before. The figure meant an improvement of 8.4 per cent compared to 2010, the previous record year. Volkswagen (VW) has been Austrians’ favoured brand for decades. Around 65,000 VW models were sold in the country in 2011. VW’s German competitor took second place in 2011 (26,000), with the Renault Dacia Group (24,000) in third and Ford (23,700) in fourth place.
The upcoming savings package – which could come into effect in April – may lead to more austerity among Austrians since it could feature higher taxes and a reduction of welfare spending. The Social Democrats (SPÖ) currently try to persuade their government coalition partner, the People’s Party (ÖVP), to give the go-ahead to a reintroduction of inheritance taxes. The SPÖ also wants wealthy Austrians to pay higher income taxes. ÖVP boss Michael Spindelegger said he wanted to carry out structural reforms before spending a thought on tax hikes. ÖVP officials think that the state could reduce its subsidies to private companies and cultural institutions by 15 per cent without harming the economy.
