The wave of inflation in Austria is weakening only slowly. The consumer climate is hardly recovering. The retail sector suffers most from this, as the available budget for purchases has become smaller in the last three months in 60% of households.
The semi-annual IHaM analyses show that the reluctance to buy in the retail sector is hardly easing. Whereas in April 2022, September 2022 and April 2023, 30% of consumers (aged 18 and over) bought fewer retail goods, this is still the case for 27%. 72% of adult Austrians continue to pay more attention to special offers when shopping. 59% reach for cheaper alternative products.
"Austrian households are coming under pressure due to higher expenses in many areas of life (especially rents, energy, which are difficult to reduce in the short term) and this is having a negative impact on the available shopping budget. Our IHaM long-term analyses document the continuing reluctance to buy", Dr. Ernst Gittenberger from the IHaM Institute for Retailing, Sales and Marketing summarises the current analyses in a long-term comparison.
"For the retail trade, this means a toxic cocktail of declining sales volumes and simultaneously higher purchase, energy and personnel costs," adds Prof. Dr. Christoph Teller, head of the institute.