More and more vacancies: Why the fashion trade in Austria is dwindling

Times are not easy for the locals Fashion retailer. You are increasingly confronted with rising costs and strong competitive pressure. As a result, there have been more closures than startups for many years, according to a study by Institute for the Austrian Economy (iföw).

The number of clothing and shoe stores in city centers and shopping centers has fallen by a good fifth since 2015. Especially in Shoe retail There have recently been several closures and bankruptcies. These not only affect small businesses, but increasingly also branch systems, says the study author Peter Voithofer.

High living costs put pressure on shopping budgets

The background is a change in consumer behavior. Because Austrians always prefer to spend their money on Leisure experiences than for clothing and shoes. Also the increased ones Cost of living put pressure on many people’s shopping budgets.

At the same time, retailers are faced with rising costs. “From 2019 to 2025 is the Consumer Price Index cumulatively increased by around 30 percent. In the case of fashion, the average increase was only eight percent,” says Voithofer. This is due to the strong competitive pressure within the industry.

More and more empty business premises in top locations

High rents are also becoming more and more of a problem for stationary retailers. The consequence is increasing Vacancysays Günther RossmanithChairman of the Federal Fashion Trade Committee Austrian Chamber of Commerce (WKÖ). The sales area across Austria has shrunk by around ten percent (or almost 200,000 square meters) since 2015.

As more and more retailers and business premises are lost, the number of them is also increasing Unemployed. Between 2008 and 2023, the number of employees shrank by eight percent. At the same time, the Part-time quota increased significantly and is currently 72 percent. This particularly affects women, who make up the majority of employees in the fashion retail sector.

After closures, 42 percent of shops remain empty

When a fashion store closes, it opens in the affected area Business premises only in a third of cases is a fashion retailer. After 42 percent of closures, the sales area remains empty. Even in top locations like this Vienna city center or that Mariahilfer Street Not only would more and more business premises be empty, but the vacancies would also last longer and longer.

Even large areas are now without tenants, some of them for years. “This is reflected in the cityscape. Often there are only temporary solutions or pop-up stores,” says Rossmanith. He appeals to landlords who “need to be more flexible” when negotiating with potential tenants. At the same time, the Real estate industry Abandon the expectation that rents could rise significantly with every tenant change.

Fashion retailers criticize parcel delivery and unfair competition

In addition to stationary retailers, retailers are also becoming increasingly important Online trading faced with challenges. Like with that Parcel deliverywhich will be introduced from October for shipments from large retailers with an annual turnover of more than 100 million euros.

Rossmanith is “rather skeptical” about this. The debate about the levy of two euros per parcel is currently dividing the retail industry. This is what he said on Thursday Viennese trade “clearly” against the measure, Shopping center owner and Bookseller However, you can gain something from the tax.

Rossmanith only sees an advantage for those retailers who do not operate an online shop. Otherwise he sees it as another “Austria surcharge”. In addition, he does not know how to impose the levy on providers from third countries such as the Chinese low-cost platforms Shein or Ago want to enforce.

Overall, these Asian online shops are always at an advantage because, for example, European environmental or Safety standards Rossmanith complains that they cannot be executed. That’s why he wants politics to be fair Conditions of competition. “Unfair tax and customs advantages” would also have to be abolished.