Retail Market Report Austria | 2023/24

Focus on Online

Competition is gradually becoming symbiotic

personal advising. The “Ropo Effect“ (research online, purchase offline) is becoming more and more important as a buying impulse.

In the midst of the hype over digitalisation and artificial intelligence, a study by the retail research institute RegioData caused quite a stir at mid-year: For the first time since the appearance of online retail, the online share of retail-relevant turnover in Austria declined – by a full 1.5 percentage points to 15 per cent. This remarkable trend is primarily attributable to the end of the corona pandemic, but there are other underlying reasons: the strong performance of numerous branches like discounters, the luxury segment and food retailing where the online share is very low. All in all, online is no longer a fear factor for brick and mortar retail. Internet shopping has become an everyday occurrence, but now complements and in no way replaces the branch-based retail trade. More than by analytical market data, this develop- ment is illustrated by qualitative trends and a growing number of successful examples that show the transition from competition for customers towards synergetic cooperation where online and offline elements together create benefits for consumers and added value for retailers. Click and Collect improves outlet efficiency, and the growing number of branches with showroom character provide haptic and visual impressions for online purchases as well as opportunities for

“Stationary brick and mortar retail is developing more and more effective concepts to deal with online competition.“

Online as a threat scenario has become a marketing and sales tool that many retailers are successfully using to expand their market shares. Another exciting facet from the viewpoint of the real estate branch is the trend by previously pure online providers to establish showrooms (with and without purchasing opportunities), for example the pioneering home24 which has operated a branch in Vienna’s Inner City for several years.