Supermarkets Closing: Fewer Branches, Higher Prices
According to a press release from the market research institute RegioData, the closures are increasingly affecting not only small grocery stores but also large supermarket chains. Nevertheless, the food giants REWE-Group, Spar, Hofer, and Lidl still maintain their dominant market position.
Although the number of branches decreased last year, the nominal turnover of the Austrian food trade increased by 4.5 percent to a total of 29.2 billion euros in 2024. RegioData attributes this increase primarily to the rising food prices, which are "partly due to the still high inflation." 75 percent of food locations and 92 percent of sales are accounted for by the "Big 4." Spar and Rewe together have a market share of 67 percent. The German retail group Rewe includes Billa, Billa Plus, Bipa, Adeg, and Penny in Austria. According to RegioData, the market share of the discounters Hofer and Lidl is 29 percent.
Regionally, Spar and Rewe share market leadership in Austria. An exception is M-Preis, which dominates the Tyrolean Oberland. While the number of locations for Spar and the REWE-Group has been declining nationwide since 2021, Hofer has expanded since then and opened ten additional locations.
Food Prices Spark Discussion
Food prices are currently a frequent topic of discussion. Federal Chancellor Christian Stocker (ÖVP) recently criticized the so-called "Austria surcharge" and sees the EU as responsible for food prices. According to him, international food companies demand higher prices in smaller countries. The Chancellor calls for a ban on these practices. The government wants to seek a "joint effort against price increases for staple foods" with the domestic food retail sector. Rewe Austria CEO Marcel Haraszti recently pointed out the low profit margins of supermarket chains in light of the political debate about the significantly increased food prices in Austria: "We do make a lot of sales, but there is little left over."
(APA/Red)
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