Success strategies for Austria’s retail trade
Growth strategies to counter the downward trend
In spite of the challenging economic conditions, there are a number of promising growth strategies for the retail trade. Branches like the book trade and fashion show that solid earnings are possible with the selection of the right location and innovative concepts.
The disappointing indicators for brick and mortar retail frequently disguise the fact that growth and solid earnings are also possible in a generally difficult economic environment. This applies to individual companies as well as entire retail branches which are increasingly looking for locations in contrast to the overall trend and see the supply of vacant space as a great opportunity. One impressive example of this trend is the book retail trade, the branch that started its global success story
a demand, above all, for smaller locations that focus on everyday consumer products, where we can serve as a visitor magnet with outlets of 300 to 400 sqm and create an inviting atmosphere.“
has a more reserved opinion. Managing Director Klaus Magele does not expect conventional bookshops will be able to re-claim market shares from online. “With a good offering focused on regional demand, the business can, however, succeed. A bookseller who knows the customers in the region always has an advantage over international chains that are supplied centrally. We leave the decisions on the product range up to the regions and, in connection with good gift articles, this creates supporting, regional added value.“ A decisive success factor for Magele is the branch environment. “For example: A fashion discounter is definitely not a good neighbour for a bookshop, and when the space strategy in a shopping centre does not realise what we need, that is a great disadvantage. We not only need high frequency, but the quality of this frequency is also decisive.“
Remarkable success is also possible – even in difficult environment – with quality, innovation and efficient location management.
with online sales. The longer period of shop closings and market exits has now been followed by a steady demand for space. “The book retail trade has remained on a growth course after the corona pandemic. People were, in fact, longing for a shopping experience and wanted to again enjoy the atmosphere in a bookshop “, explained Andrea Heumann, Managing Director of the branch leader Thalia. “We currently see
However, the continuous development of the branch concept is unavoidable: “This includes the regionalisation of the offering, add-on services like collection points and self-service cash points as well as gastro zones in the larger branches. We basically create relaxation areas in all our bookshops to encourage browsing and provide inspiration.“ Austria’s traditional bookseller Morawa
There are also a number of success stories
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