Despite dampened consumer enthusiasm due to inflation, domestic retailers are hoping for good business during the discount days imported from the US to Europe at the end of November, ‘Black Friday’ and the subsequent ‘Cyber Monday’. However, there are signs of a decline in sales.
According to a survey commissioned by the Federal Trade Division of the Federal Chamber of Commerce, the Austrians surveyed want to spend only 195 euros per person this year, instead of 215 euros as last year. Extrapolated to the population, this means a decline in turnover of ten percent, from 480 million euros last year to only 430 million euros this year, the federal trade division WKÖ calculates in a press release on Monday.
“Past inflation entrenched in people’s minds”
This is another argument for their chairman, Rainer Trefelik, who is currently trying to convince the union in the collective labor agreement negotiations to accept a loss of real wages. “The price increases of the past seem to be anchored in the minds of consumers: if even major promotional days with attractive discounts cannot improve the purchasing mood, this is a sign of how much pressure retailers are currently under,” he writes in the broadcast. The research was conducted by SME Research Austria.
Discount days are often a losing proposition
At the same time, Trefelik, referring to a study by management consultancy Kearney, regards the discount days as a loss-making venture for retailers. Because no additional products are purchased on these days, already planned purchases are usually made at a lower price.
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.
