An ongoing study from Kepler University in Linz rated the domestic consumer climate in September as “catastrophic”. The buying mood of the Austrians is limited given the rising prices. The price increases have already arrived in online trading, the supposedly cheaper alternative. According to the research, there are now opportunities for discounters.
Household consumers are in a kind of “shock paralysis” due to the cost explosion. For more than six months, a third of the population has reacted with reluctance to buy to rising inflation. There is no end in sight to this behavior.
Expectations more than gloomy
This is the conclusion of Johannes Kepler University Linz (JKU), which has been observing consumer behavior in this country for months. “The expectations regarding the direct price development fluctuate between black and deep black,” says Ernst Gittenberger, who describes the analysis results. According to the survey, about 30 percent of 920 respondents said they shopped less because of rising retail prices. In April, that share was also 30 percent.
Buying online is hardly an alternative
According to the research, online trading as a supposedly cheaper shopping alternative is now almost obsolete, as the price increases have also reached domestic and foreign online retailers. According to the survey, only 28 percent would try to find cheaper products online, compared to 43 percent in April. The share of people who want to order more online fell from 20 to 11 percent in September.
The hour of the discounter strikes
That is why the hour of discounters and private labels has arrived. Sales in these areas are rising above average, with some reports reporting double-digit growth. The internet is often used to compare prices and discover new special offers. In the September survey, 64 percent of those surveyed said they would substitute cheaper product alternatives for their purchases. In April it was still 59 percent. The majority of respondents (68 percent) also indicate that they pay more attention to price campaigns.
Companies suffer twice
But the financial situation of households continues to deteriorate. If you still can’t afford the groceries, try saving elsewhere. That is now the case for more and more people. When all else fails, even savings must be attacked. That currently affects every tenth person. “Alternative” sources of finance continue to play a minor role in shopping, even as trade-relevant incomes are coming under increasing pressure from persistently rising prices, according to the study.
It is also becoming increasingly difficult for domestic retailers. The poor consumer environment and rising costs have caused businesses to suffer twice. Added to this are the low revenues in the retail sector.
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.
