Last year alone, 9,000 square meters of retail space was lost in local cities. Instead, there will be offices, fitness studios, doctors and bars. The result is that a walk through the city becomes less and less interesting for customers – and retailers subsequently miss out on these costs.
Taped shop windows, lowered roll bars, shops without furniture or goods: more and more shops in Austria have to close. It often takes years before new tenants are found for the vacant space. First the pandemic, then high inflation and the resulting real estate crisis have fueled a development that is having an undeniable impact on local town and cityscapes. It is becoming less and less interesting for customers to stroll through the city and window shop.
“The retail spaces show how consumer behavior is changing,” explains Rainer Will, head of the retail association. In 2023 alone, 9,000 square meters of shopping area will be lost. Fashion stores are particularly affected. Fashion still takes up almost 50 percent of total retail space in city centers, but more and more customers are migrating to international online giants. “The clothing industry has lost 100,000 square meters of sales space over the past ten years and has literally eroded,” reports Hannes Lindner, director of the consultancy firm Lage + Markt, which annually examines changes in cities, shopping centers, etc. .
The state capitals were affected in different ways
There are not many shopping streets that have developed positively. Winners of the past ten years in Vienna include Landstraßer Hauptstrasse (+6.5%), the 1st District (+2.7%), Meidlinger Hauptstrasse and Favoritenstrasse (+1.1%) and Meidlinger Main Street (+0 .5%). Consumers also have more choice in Dornbirn (+5.9%), Amstetten (+2%) and Leoben (+1.4%). There are fewer shops in St. Pölten (-28.1%), Wiener Neustadt (-20.9%), Steyr (-17.3%), Krems (-14.8%), Villach (-10), among others .7%), Graz (-7.7%) or Klagenfurt (-7.0%). Innsbruck, Linz, Bregenz and Eisenstadt escaped with a black eye and without much change. In Salzburg the minus is 1.9%.
Instead of retailers, other industries are moving into the empty stores. Offices, social facilities, storage spaces and medical practices have been added frequently recently (see graph above). Banks are increasingly closing their branches and beauty and fitness studios are opening up. Restaurants that used to often come in as new tenants are now moving to more affordable locations. “The gloom of walking through city centers will not get any better for customers,” fears Lindner, who expects retail space to shrink further in the coming years. Vacancies are increasing throughout Austria.
Many no longer expect profits
“Walking customers are migrating to the internet,” reports trade association boss Will. The money is missing from the dealers’ coffers. 35 percent of store operators fear they will make a loss this year. By comparison, only a quarter expect a profit. 18 percent have therefore announced that they will stop expansion this year and one in ten operators plans to close branches. Eleven percent want to close their business activities this year. Small and medium-sized businesses in particular are under pressure. Twelve percent in this segment want to stop this year.
To remain competitive, many companies would need to specialize, offer additional services and better coordinate their activities on site and online, consultant Lindner advises.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
