Because more and more consumers are short on money, discount stores are on the rise in this country. They already have an estimated turnover of 10.1 billion euros per year. The promotional items markets are particularly popular right now, as they score points with rapidly changing product ranges at extremely low prices.
The triumph of discount retailers is uninterrupted: while more and more traditional retailers struggle for survival or have to close, discount stores are springing up like mushrooms. They already have 2,885 branches in Austria and an estimated turnover of 10.1 billion euros. Burgenlanders, Carinthians and Lower Austrians in particular like to spend their money in cheap shops.
“The most dynamic player of late was NKD,” reports Lage+Markt director Roman Schwarzenecker, who analyzed the market in this country. The German clothing retailer, which also sells home textiles and home accessories, has expanded its branch network to 326 stores and is now behind discounter Kaiser Hofer. Prices can sometimes even keep up with the dumping offers from Chinese online giants Temu or Shine, which flood red-white-red households with packages.
Promotional stores that attract customers with all kinds of goods have also grown particularly quickly. While in 2009 there were only 13 branches of different providers, this year there will be 337 locations throughout Austria, according to the +Markt location. The German chains Tedi and Thomas Philips are just as active as the Dutch-founded provider Action, which has already opened more than 100 branches in this country. “We offer a surprising, varied range and impress with the lowest prices. Two-thirds of the offering is constantly changing. Between 75 and 150 new items appear on the shelves every week. This flexibility allows us to respond very quickly to customer requests,” Austrian boss Boyko Tchakarov explains his concept.
Fying Tiger from Scandinavia is represented with 15 stores. Austrian boss Anna Eiselsberg: “Every customer buys an average of 3 to 4 items per purchase.” The 500 products that change monthly and match the relevant season sell best.
Woolworth is currently launching for the second time in Austria. Before the bankruptcy in 2009, they were already present once. Austrian sales manager Ivana Jezidzic announces that they want to have 30 branches in this country by the end of the year. Half of the range is sold for less than three euros.
It’s not surprising that discount stores are booming. More and more consumers have insufficient money due to loss of purchasing power. “The discount has become socially acceptable,” says expert Schwarzenecker. This is also reflected in the fact that low-cost providers are increasingly opening in urban locations and are also popular as a source of traffic in shopping centers, even though they often pay less rent than traditional retailers.
Mömax and Möbelix are the first address for anyone who needs or wants to save. Company spokesperson Thomas Saliger: “Our price reductions are an incentive for many people to realize their postponed housing wishes.”
The food discounter now has a third more branches than fifteen years ago. For many customers, shopping cheaply becomes more important in times of rising prices, Penny says.
But being cheap alone is no guarantee of success. The total concept must be right so that consumers want to come. This is evident, among other things, from the withdrawal of Leek Spirat or Cherry special items, according to expert Schwarzenecker.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
