Not only pizza or pasta, but also milk, bread, wine and bananas at the push of a button: since the outbreak of the pandemic, food has ended up in the virtual shopping bags of Austrians more often (see info box). And this even though stationary supermarkets as part of the critical infrastructure never closed their gates during the crisis.
What is supposed to offer customers comfort, time savings and protection from overcrowded branches is changing the food trade – albeit at a low level. The established players Spar, Rewe, Hofer, Lidl, Unimarkt and MPreis face competition from two sides: on the one hand, from pure online delivery services such as mjam, Gurkerl, Alfies and Jokr, which are largely backed by foreign investors. On the other hand, there are local and regional producers who deliver their goods in the vicinity.
Werner Schickmayr confirms that the competition in the online grocery trade has increased. In 2014, the manager helped to set up the online shop at Unimarkt. The company in Traun was one of the pioneers at the time. “We were brave, but made a strategic decision to open up in the direction of digitization,” says Schickmayr in an interview with the OÖN.
Unimarkt delivers orders by 4 p.m. the next day in cooperation with Swiss Post and covers 80 percent of households. In spite of increased growth in the pandemic, overall online revenues were limited, admits Schickmayr. “We generate the sales of a few stationary branches with 8000 online products.”
Low margins, expensive logistics
In addition to the high supply density with stationary supermarkets in Austria, the modest proceeds are one of the main reasons why grocers in this country have difficulties online. Low margins, comparatively expensive logistics and the perishability of the goods had previously acted as a deterrent for retailers.
In November of the previous year discounter Hofer ventured into the Internet. “In 2020 we saw measurably for the first time that we missed sales because we didn’t have an online delivery service,” said CEO Horst Leitner at the time. When asked, Hofer said that they were “very satisfied” with the order volume so far. Hofer currently only delivers groceries in Vienna, but the discount store with headquarters in Sattledt is considering expanding the service to other federal states as well.
Dominik Neuwirth sees the market situation calmly. “Those who are small and agile have online advantages over big ones,” says the managing director of mjam market. The online supermarket delivers groceries in Linz, Vienna, Salzburg and Graz. The inhibition threshold to buy products online has fallen, says Neuwirth and adds: “This trend will also outlast the crisis.”
facts and figures
- 2.5 percent is the online share of total food sales in Austria. In the previous year there was a growth of 12.3 percent compared to 2020. This emerges from the Digital Market Outlook of the Statista portal.
- 14 percent of all Austrians ordered food online at least once in 2021. Coffee and tea are the most commonly ordered.
- 168 million euros Online retailing of food and beverages was difficult in the previous year. This year it should be 185 million euros, for 2025 experts predict 224 million euros in sales.
Source: Nachrichten
