Variety Stores in Austria

2020 IMPACT

Low value declines for variety stores due to lockdown but channel continues to expand

The pandemic has had a marginally negative impact on variety stores during the early stages due to the lockdown and general home seclusion trend, which reduced the desire to spend longer in stores than consumers would like for fear of increased risk of exposure to the virus, even as restrictions were relaxed. However, while the channel registered low current value decline overall, it saw continuing expansion efforts by several major players, which helped to offset stronger losses during the lockdown period.

Variety stores continues to improve perception amongst consumers due to efforts of major players

Prior to the emergence of the pandemic, variety stores had continued to record a dynamic performance in Austria, supported by the successful efforts of leading brands such as Tedi, Action and Hema to transform the unappealing downmarket image of the earlier variety store concept which tended to be typified by “1 Euro” stores. Typically, Austrian consumers do not visit a variety store in search of a specific item but rather for the purpose of having a browse.

A number of stores continue with expansion plans despite challenging operating environment

While Eduscho (Austria) GmbH retained its overall leadership of variety stores in value share terms in 2020 through its Tchibo banner, TEDi GmbH & Co KG continued to lead in both outlet numbers (where it opened another 12 stores in 2020 to total 160) and selling space. Remaining at 128 stores in 2020, Eduscho had been gradually reducing its branch network over the review period in Austria in search of greater profitability and at the same time increasing its investment in foodservice and upgrading its online shop with features such as exclusively online products and click-and-collect.

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