Economic output fell by 6.7 percent in 2020. This year, the gross domestic product is forecast to grow again by 3.9 percent. The survey on behalf of the domestic trade association of 136 member companies shows how badly the trade suffered from the numerous lockdowns.
According to their own statements, the interviewed entrepreneurs suffered an average drop in sales of 25 percent in 2020. For this year they are expecting an average sales decline of four percent. The low customer frequency leads to an increase in stocks, at the same time there are fewer new goods due to delivery delays, according to the industry.
Crisis not yet overcome
Despite an “economic resurrection” in the second quarter of 2020, trade association vice-president and Unito boss Harald Gutschi does not see the corona crisis as over yet. “The Austrian trade is in the biggest crisis since the end of the Second World War,” Gutschi said yesterday, Wednesday, in an online press conference with the consulting firm EY.
There are currently particularly long delays in delivery for electronics, clothing, wooden furniture, toys and sporting goods. The lack of chips is noticeable in the case of electronic items, while delivery costs have risen sharply in the case of other products and higher producer prices in Asia. The head of Unito (including Quelle, Otto, Universal) sees “enormous pressure on margins” for dealers due to the current delivery problems and no possibility of even passing the price increases on to customers. “That will keep us busy all year round,” said Gutschi.
The Unito boss sees a need for political action in small and medium-sized trading companies because they would have it “very, very difficult” in the no-fault corona crisis: “We still need targeted funding for these dealers.” Structural change cannot be prevented, but it can be delayed and with subsidies, companies can adapt in the coming years.
Among other things, the trade association is pushing for the tax reform to be brought forward, ancillary wage cost reductions, the abolition of rental contract fees and a global minimum tax.
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
