Retailing in Austria
Euromonitor International's Retailing in Austria report offers insight into key trends and developments affecting the industry. The report examines all retail channels to provide sector insight. Channels include department stores, food retailers, health and beauty retailers, clothing and footwear retailers, home furniture and household goods retailers, durable goods retailers, and leisure and personal goods retailers. There are profiles of leading retailers, with analysis of their performance and the challenges they face. There is also analysis of alternative selling channels (kiosks, homeshopping, internet retailing, service stations, vending and direct selling, as available).
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Chapters: 12 | Tables: 89 | Publication date: Oct 2006
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Executive summary
Small increase in 2005
Total retail sales increased by 1% in 2005, just like a year before. Overall growth in retail sales was negatively affected by saturation as well as hesitant consumer spending. Furthermore, there was a shift in consumer spending from retail to leisure activities and services, including mobile phones, as well as long-term investments, including property and savings. Disposable income was further reduced by higher energy and fuel prices.
Food sales accounted for almost 34% of retail sales in 2005, down two percentage points over the review period. This was due to lower prices in food retailing as well as a decline of food on the list of consumer priorities.
Aggressive pricing dampens value growth
A further factor dampening value growth in the Austrian retail market was aggressive pricing, especially in food, but also in a number of large non-food categories, such as furniture/furnishing, textile and footwear and DIY.
Discounting formats remained a main winner in grocery, with further expansion of the Hofer (Aldi) and Lidl chains in 2005. In addition, Rewe completed its conversion of its Mondo chain into Penny Markt, while The Tengelmann Group expanded its Zielpunkt chain and continued the rollout of the Plus format alongside Zielpunkt. Finally, German discounter chain Norma entered Austria in 2005.
Aggressive pricing was a key competitive factor in non-food categories, benefiting chained formats. In furniture and furnishing, the Kika Leiner group introduced a new furniture discounting brand, möbel.lager, while Ikea continued to make strong value share gains in 2005. Price competition in categories such as clothing and footwear and household goods was further fuelled by non-food offers in discounters and supermarkets/ hypermarkets.
Further increase in level of concentration
In 2005, large retail chains were once again expected to outperform retail as a whole, which will likely increase the level of concentration further. The concentration is particularly high in grocery, where the top seven players across all mixed retailer formats accounted for more than 65% of value sales in 2005.
In non-food retailing, the categories with the highest concentration were furniture/furnishings and chained drugstores at the end of the review period. The strongest trend towards chained outlets was in clothing and footwear. Although it remained very fragmented and versatile with a large number of independent retailers and boutiques in 2005, there was a strong trend towards larger chained and mono-brand formats such as Esprit or Zara, with larger players such as H&M and C&A also gaining value share at the end of the review period.
Discounters and supermarkets lead growth in grocery retailing
In 2005, grocery retailing was stagnating, with current value sales growing by less than half a percentage point. Hypermarkets saw some improvement in momentum, as growth in 2004 was affected by refurbishments, but there was also a trend away from hypermarkets towards large supermarkets. This continued in 2005, underpinning the dynamism in supermarkets. Intense competition between supermarkets/hypermarkets and discounters led to greater efforts on both sides to emulate some of the key success factors of the competition: thus non-discounting formats strengthened low-price credentials, for example by deep discounts and greater private label activities. On the other hand, discounters made efforts to improve its distinctive advantages beyond low prices, for example by offering more fresh products, and the introduction of organic products.
Table of contents
1. EXECUTIVE SUMMARY
Small increase in 2005
Aggressive pricing dampens value growth
Further increase in level of concentration
Discounters and supermarkets lead growth in grocery retailing
2. OPERATING ENVIRONMENT
2.1 GOVERNMENT POLICIES
2.2 LEGISLATION
2.3 OPENING HOURS
2.4 RETAILING LANDSCAPE
Main street continues to lose to out-of town formats
2.5 EMPLOYMENT IN RETAILING
Minimum wage
Table 1 Employment in Retailing: 2000-2005
2.6 CASH AND CARRY/WAREHOUSE CLUBS
Key trends and developments
Competitive environment
Table 2 Cash and Carry/Warehouse Clubs: Sales by National Brand Owner: Sales Value 2004-2005
3. RETAILING: RETAIL SALES
3.1 MARKET PERFORMANCE
Overview
Table 3 Sales in Retailing by Sector: Value 2000-2005
Table 4 Sales in Retailing by Sector: % Value Growth 2000-2005
Table 5 Sales of Grocery vs Non-Grocery in Retailing 2000-2005
4. RETAILING: COMPETITIVE ENVIRONMENT
4.1 LEADING RETAILERS
Table 6 Retailing Company Shares: % Value 2004-2005
4.2 RECENT MERGERS AND ACQUISITIONS
Summary 1 Major Mergers and Acquisitions 2001-2005
4.3 CONCESSIONS
Summary 2 Summary of Leading Retailers and their Concessions
5. PRIVATE LABEL
5.1 RETAILERS AND THEIR STRATEGIES
Strategies
Positioning
Penetration
Summary 3 Selected Retailers and their Private Label Brands 2005
6. RETAILING: FORECAST MARKET PERFORMANCE
Overview
Positive growth factors
Negative growth factors
Table 7 Forecast Sales in Retailing by Sector: Value 2005-2010
Table 8 Forecast Sales in Retailing by Sector: % Value Growth 2005-2010
7. MARKET PERFORMANCE: GROCERY RETAILERS
7.1 OVERVIEW
Key trends and developments
Competitive environment
Forecast
Table 9 Grocery Retailers by Sector: Value 2000-2005
Table 10 Grocery Retailers by Sector: Units 2000-2005
Table 11 Grocery Retailers by Sector: Selling Space 2000-2005
Table 12 Grocery Retailers by Sector: % Value Growth 2000-2005
Table 13 Grocery Retailers by Sector: % Unit Growth 2000-2005
Table 14 Grocery Retailers by Sector: % Selling space growth 2000-2005
Table 15 Grocery Retailers Company Shares: % Value 2004-2005
Table 16 Grocery Retailers Brand Shares: % Value 2004-2005
Table 17 Grocery Retailers Forecasts by Sector: Value 2005-2010
Table 18 Grocery Retailers Forecasts by Sector: Units 2005-2010
Table 19 Grocery Retailers Forecasts by Sector: Selling Space 2005-2010
Table 20 Grocery Retailers Forecasts by Sector: % Value Growth 2005-2010
Table 21 Grocery Retailers Forecasts by Sector: % Unit Growth 2005-2010
Table 22 Grocery Retailers Forecasts by Sector: % Selling space growth 2005-2010
7.2 FOCUS SECTOR: DISCOUNTERS
Key trends and developments
Competitive environment
Forecast
Table 23 Discounters: Value Sales, Outlets and Selling Space 2000-2005
Table 24 Discounters: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 25 Discounters Company Shares by Value 2004-2005
Table 26 Discounters Brand Shares by Value 2004-2005
Table 27 Discounters Company Shares by Outlets 2004-2005
Table 28 Discounters Brand Shares by Outlets 2004-2005
Table 29 Discounters Company Shares by Selling Space 2004-2005
Table 30 Discounters Brand Shares by Selling Space 2004-2005
Table 31 Discounters Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 32 Discounters Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
7.3 FOCUS SECTOR: CONVENIENCE STORES
Key trends and developments
Competitive environment
Forecast
Table 33 Convenience Stores: Value Sales, Outlets and Selling Space 2000-2005
Table 34 Convenience Stores: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 35 Convenience Stores Company Shares by Value 2004-2005
Table 36 Convenience Stores Brand Shares by Value 2004-2005
Table 37 Convenience Stores Company Shares by Outlets 2004-2005
Table 38 Convenience Stores Brand Shares by Outlets 2004-2005
Table 39 Convenience Stores Company Shares by Selling Space 2004-2005
Table 40 Convenience Stores Brand Shares by Selling Space 2004-2005
Table 41 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 42 Convenience Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8. MARKET PERFORMANCE: NON-GROCERY RETAILERS
8.1 OVERVIEW
Key trends and developments
Competitive environment
Forecast
Table 43 Non-Grocery Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 44 Non-Grocery Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 45 Non-Grocery Retailers Company Shares by Value 2004-2005
Table 46 Non-Grocery Retailers Brand Shares by Value 2004-2005
Table 47 Non-Grocery Retailers Company Shares by Outlets 2004-2005
Table 48 Non-Grocery Retailers Brand Shares by Outlets 2004-2005
Table 49 Non-Grocery Retailers Company Shares by Selling Space 2004-2005
Table 50 Non-Grocery Retailers Brand Shares by Selling Space 2004-2005
Table 51 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 52 Non-Grocery Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
8.2 FOCUS SECTOR: HEALTH AND BEAUTY RETAILERS
Legislation
Key trends and developments
Competitive environment
Forecast
Table 53 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2000-2005
Table 54 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2000-2005
Table 55 Health and Beauty Retailers Company Shares by Value 2004-2005
Table 56 Health and Beauty Retailers Brand Shares by Value 2004-2005
Table 57 Health and Beauty Retailers Company Shares by Outlets 2004-2005
Table 58 Health and Beauty Retailers Brand Shares by Outlets 2004-2005
Table 59 Health and Beauty Retailers Company Shares by Selling Space 2004-2005
Table 60 Health and Beauty Retailers Brand Shares by Selling Space 2004-2005
Table 61 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2005-2010
Table 62 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2005-2010
9. NON-STORE RETAILING: VENDING
Key trends and developments
Competitive environment
Forecast
Table 63 Vending: Value 2000-2005
Table 64 Vending: % Value Growth 2000-2005
Table 65 Vending Company Shares by Value 2004-2005
Table 66 Vending Brand Shares by Value 2004-2005
Table 67 Vending Forecasts: Value 2005-2010
Table 68 Vending Forecasts: % Value Growth 2005-2010
10. NON-STORE RETAILING: HOME SHOPPING
Key trends and developments
Competitive environment
Forecast
Table 69 Home shopping: Value 2000-2005
Table 70 Home shopping: % Value Growth 2000-2005
Table 71 Home shopping Company Shares by Value 2004-2005
Table 72 Home shopping Brand Shares by Value 2004-2005
Table 73 Home shopping Forecasts: Value 2005-2010
Table 74 Home shopping Forecasts: % Value Growth 2005-2010
11. NON-STORE RETAILING: INTERNET RETAILING
Key trends and developments
Competitive environment
Forecast
Table 75 Internet Retailing: Value 2000-2005
Table 76 Internet Retailing: % Value Growth 2000-2005
Table 77 Internet Retailing Company Shares by Value 2004-2005
Table 78 Internet Retailing Brand Shares by Value 2004-2005
Table 79 Internet Retailing Forecasts: Value 2005-2010
Table 80 Internet Retailing Forecasts: % Value Growth 2005-2010
12. NON-STORE RETAILING: DIRECT SELLING
Key trends and developments
Competitive environment
Forecast
Table 81 Direct Selling: Value 2000-2005
Table 82 Direct Selling: % Value Growth 2000-2005
Table 83 Direct Selling Company Shares by Value 2004-2005
Table 84 Direct Selling Brand Shares by Value 2004-2005
Table 85 Direct Selling Forecasts: Value 2005-2010
Table 86 Direct Selling Forecasts: % Value Growth 2005-2010