Further gains for discounters
More momentum for discounters
Discounters remain on an expansion cour- se in 2024 and are increasingly taking over expensive top locations. Driven by rising cost consciousness and good rental opportuni- ties, they are snapping up attractive space at popular locations.
© TEDi
The discount segment is also focused on expansion in 2024, in contrast to the general trend, and is continuing to increase space. The most important growth from a quantitative standpoint can be found at the traditional discount locations, e.g. retail parks, but ventures at expensive top locations are becoming more frequent. The discounters’ success story is underscored
ced expansion of the network with roughly 30 locations is proceeding as planned. In September, an outlet with 1,837 sqm opened on the Favoritenstrasse, 2,044 sqm were rented in the Stadlau commercial park (opening Q1/2025), and nearly 1,000 sqm are scheduled to open this year in the StopShop Oberwart.
expansion course of established leading chains like Action, TEDi and NKD, which are steadily growing their branch networks. For example: TEDi opened a branch in Spittal an der Drau during autumn 2024. The opening of discount branches at prestigious locations in 2024 is anything but unusual. Action is scheduled to open on the Mariahilfer Strasse this year, and Hofer has operated two markets for some time. Several discounters are also looking for locations in the Inner City, whereby good secondary locations are generally preferred over absolute top sites. Discounters will often not accept the same high rents as traditional retailers for first-rate locations, but the “discounter discount” is now rather low, and credit ratings normally above the retail average make very these firms attractive tenants.
by the uncertainty of many consumers over economic developments and the resul- ting, foreseeable increase in cost consciousness. The large supply of vacant space at promising locations has also made expansion substantially easier for the low-cost segment.
The discounters’ success story is underscored by the uncertainty of many consumers over economic developments and the resulting, foreseeable increase in cost cons- ciousness.
One particularly remarkable development is the growth course of Woolworth, which has returned to Austria after a longer intermis- sion. This “discount department store” has a widely diverse line of products and is focused more on significantly larger outlets than most other discounters. The announ-
These three locations with nearly 5,000 sqm were brokered by EHL Gewerbeimmo- bilien. With its large branches, Woolworth is an attractive follow-up tenant for space previously occupied by retailers in higher price segments. A further success story is the non-stop
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