Trade Association with Demands for Next Government

In 2024, the trade sector, in which 71 percent of the workforce are women, suffered particularly in the first half of the year, according to statements from various top executives presented at the Trade Association press conference in Vienna. All highlighted that online growth in their respective areas was and is greater than in traditional retail.

Trade Association Expects Real Increase for This Year

After real sales declines in 2022 and 2023, there was a real increase of 0.7 percent to 77.2 billion euros last year. The consumer sentiment for this year is hopeful. However, the delicate growth must not be stifled, warned the trade representatives. The savings rate, which is too high from the trade's point of view, at a good 11 percent, must be "taken to the streets and contribute to an economic upswing," hoped Association Managing Director Rainer Will. For this year, 39 percent of entrepreneurs expect a profit in a survey, 23 percent a loss, the rest a balanced business. 43 percent of consumers, on the other hand, are positive about new expenditures.

Trade Association President: AI of Huge Importance for Trade

The President of the Trade Association, Stephan Mayer-Heinisch, strongly emphasised the increasing importance of Artificial Intelligence (AI). "I believe we need to turn our attention to the fact that AI will not hit us individually but at every stage of our industry - from facility management to marketing to customers and payment services." AI will penetrate the industry in the next three years. The HV is trying to position itself as an innovation hub, as the change is urgent, retail must join the AI world. "It's about innovation and mindset. It's not a danger but a huge survival opportunity for trade," said Mayer-Heinisch. "We don't need to be afraid, we just need to follow innovation." This then triggers investments and optimism. Moreover, it is evident in the USA that there "customers are reviving retail, retail is back in all areas".

Trade Association Estimate: 900 Million Euros Lost to Chinese Traders

In the field of e-commerce, there needs to be an international level playing field - fair competition conditions. "We are not against cross-border trade but against unfair regulations that disadvantage local providers," said Otto manager Harald Gutschi. In addition, the HV calls for a nationwide technology and innovation offensive, including the promotion of artificial intelligence (AI) and cybersecurity. Gutschi spoke of a "drain of 900 million euros in 2024" solely due to Chinese online giants. People from Austria ordered products worth about 1.5 billion euros from China last year. Since the products "naturally come very cheaply and without VAT directly from China, the value chain looks different. "If you calculate that you would sell the products in Austria with a factor of three, it would amount to 4.5 billion euros - and 20 percent VAT on that makes 900 million euros."

Trade Association's Classic Demands to the Next Government

The managers named further classic demands for observers, which would need to change from a business perspective in Austria - for which, of course, the next government would be responsible. HV Vice and C&A Manager Norbert Scheele called for a halving of the "suffocating" bureaucracy in the form of a "One in-Two out" rule. This means that for every new regulation, two old ones should expire. In addition, new regulations should be introduced with an expiry date and evaluated after a certain period.

IKEA manager Nicole Reitinger criticized, among other things, the EU supply chain law. She called on behalf of the HV for the next government to implement a "more practical climate protection, a company-related implementation. Because well-intentioned is not always well done." In the furniture trade, there was a sales slump of 8 percent last year and the final bankruptcy of Kika/Leiner. Whether Ikea will take over locations was left open by Reitinger upon request. Last but not least, DM manager Karin Reisinger called on behalf of the HV for a "comprehensive reform of the labor market with more employment incentives and a reduction in wage-related costs by half a percentage point per year." There is also a need for more full-time work - and therefore more childcare.

(APA/Red)

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