“Corona, on the other hand, was a children’s party,” summarizes trade chairman Rainer Trefelik. By this he means the exploding energy costs and inflation, which are also increasingly taxing trade. Due to inflation, the frequency in the shops is also falling.
Expenditure on electricity is only a small part, but as the industry generally does not have the highest margins, this is clearly visible. At many retailers, gross surpluses have collapsed by more than 70 percent. “By comparison, the fashion trade has clearly been hit hardest by the crises,” confirms the head of the trade association, Rainer Will.
By the end of the year, the loss of turnover could amount to 120 million euros. Supply chain issues also remain an issue. Retailers cannot simply pass on prices and the competition from online stores hurts.
The first quarter was about 20 percent weaker than before the crisis. In the second quarter, many companies recovered somewhat, “starting in July, but at the same time as the heat wave, sales fell from the previous year,” said Jones boss Gabor Rose. “However, we hope the decline is due to the heat and not inflation.” Because at the moment the money worries of Austrians are also depressing the mood for consumption. It is the worst since the financial crisis. According to a Teambank survey, 64 percent of Austrians say they would most likely save on fashion. “There is no denying that costs are still below 2019 levels,” C&A’s Norbert Scheele laments.
Rainer Trefelik warns, however: “But we must not lose optimism. Otherwise, the consumer’s mood will deteriorate further.” Ernst Mayr, von Fussl adds: “I am still optimistic for the coming autumn. We also notice that there are occasions like baptisms or weddings where people buy smarter clothes.” However, it is questionable whether this upward trend will continue.
In any case, winter and the coming year are more worrisome than autumn. Retailers are concerned about the inflation adjustment of rents at the turn of the year, even higher energy costs and more expensive employees.
“There are still no tourists,” says Trefelik. The fashion stores also often determine the high streets and shopping centers, because they attract people and also influence the number of visitors in other stores. . “If masks become mandatory again in winter, the consumer’s mood will be in the basement,” fears Trefelik, himself a fashion retailer.
When it comes to collective bargaining, he expects difficult conversations. Trade is still not the most attractive industry for employees: Jones boss Gabor Rose: “In some parts of Austria it is almost impossible to find employees for sales”.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
