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Austria
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Contents
Demographics
Political Outlook
Economic Overview
Europanel Data
Top Retailers
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Country Facts
Population (2010):
8.37 million inhabitants
Population Density:
99 people/km
Ruling Party:
SPÖ-ÖVP coalition
Chancellor of Austria:
Werner Faymann
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Demography: Populations of States
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Demographics
15.0 17.5
67.5
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Source: Statistik Austria 2010
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Political & Economic Outlook
The good working relationship between the Social Democratic Party and the Austrian
People’s Party will sustain their grand-coalition government
Austria should continue to build on its good relations with the newer EU member states
and support the EU's expansion to the western Balkans, particularly Croatia but it
remains strongly opposed to Turkish EU membership
Being small, Austria has traditionally been an open, export-oriented country. Its strength
lies in its small and medium-sized companies, many of them family-owned, that make
highly specialised, top-quality products and export them all over the world
World trade recovery to pre-crisis levels along with the strong economic growth of
Germany - Austria’s main trade partner - driven the Austrian economy to grow over the
course of 2010
The rapid economic recovery is likely to continue. For 2011 Austria expects economic
growth of 1.6%, with a plus of up to 2% forecast for 2012
Unemployment has not risen as steeply as in other European countries, partly due to
government intervention with subsidised programmes for employers
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Economic Overview
Consumer Price
2.20 3.22 0.40 1.50 1.74
Inflation (%)
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Grocery Retail Market Sizes 2010
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The Retail Market
IGD Grocery Retail Market corresponds to the total annual turnover (excluding VAT) of
retail outlets predominantly selling food. It includes the sales of non-food articles (i.e.
health & beauty, pet care, clothing, DIY etc) sold by hypermarkets, supermarkets,
discounters, neighborhood stores, specialised food stores (bakeries, butchers, etc) and
open markets. It excludes all cash & carry, delivered wholesale, foodservice and
drugstores/chemists
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Retail Consumer Spend Per Capita Austria
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Source: IGD Datacentre 2011
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The Grocery Retail Market – Structure By Format
The most significant change in the market over the past decade has been the decline of
the superettes and traditional grocers, as the major retailers have become a more
dominant force
The Austrian grocery industry is a highly concentrated market where the three largest
retail players account for approximately 67% percent of the total sales volume
The Austrian market is dominated by German retailers, largely due to the linguistic,
cultural and historical links between the two countries
Rewe International - the Austrian-based affiliated company of the German Rewe Group
- is the number one on the domestic market ahead of Spar Austria and Hofer
The hard discounters Hofer and Lidl have an overall market share of around 18 per
cent. Both retailers grew strongly between 2003 and 2007 before their performance
stagnated
There is still a general ban on Sunday trading, although this is lifted in some major
tourist areas
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Top Grocery Retailers 2010
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Source: IGD. Note: excludes Cash & Carry and members club operations
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Market Share - Austria
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Source: IGD Market Share. The methodology is detailed at the end of this presentation
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Total Sales Sales Area Av. Sales Area
Banner Format No. of Stores
(€m) (sqm) (sqm)
Billa, Merkur 4,102 S/S 1,120 1,240,000 1,107
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In 2010, Rewe’s chains Billa, Merkur and Bipa grew
strongly, while Penny and Adeg had weaker
performance
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The new Adeg private label range "Adeg mit Leib und
Seele“ was launched in January 2011 and aimed to boost
the regionality of Adeg
All products under the brand "Adeg mit Leib und Seele“
originate from Austria. The range was launched with 11
products and will be extended up to 100 SKUs in the near
future
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Total Sales Sales Area Av. Sales Area
Banner Format No. of Stores
(€m) (sqm) (sqm)
Interspar
1,017 H 64 160,640 2,510
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Spar, Vienna
During the last few years, Spar Austria has
modernised and increased the selling area of a
significant number of both independent retailer and
company-owned shops
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Interspar, Salzburg
New INTERSPAR hypermarket flagship store
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Banner Total Sales Format No. of Sales Area Av. Sales Area
(€m) Stores (sqm) (sqm)
Hofer 3,204 H/S D 430 301,000 700
ALDI Sud entered Austria in 1967 with the acquisition of the Hofer chain
Austria is ALDI's second most important market in Europe, after Germany
Aldi operates seven regional divisions. Each serve between 40 to 70 stores and are
located at Hausmannstaetten, Rietz, Sattledt, Stockerau, Trumau, Weissenbach and
Loosdorf
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Hofer offers 850 basis SKUs and 30-40
promotional SKUs, which rotate twice a week
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Banner Total Sales Format No. of Stores Sales Area Av. Sales
(€m) (sqm) Area (sqm)
Markant 1,005 S/S 1,434 616,620 430
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There are 12 operational shareholders, including
grocery retailers and drugstores. The key grocery
players are:
Pfeiffer Handel GmbH
Brückler Grosshandelsges mbH
Wien Kastner Großhandels Ges. mbH, Zwettl
Julius Kiennast
Wedl & Dick Ges mbH
ZEV-Markant independent retailers operate individual
fascias and the ‘Nah & Frish’ banner
Pfeiffer/Unimarkt is the largest group within the
cooperative, following the acquisition of Hornig in 2005
and the subsequent expansion of the Unimarkt
franchise chain
Group’s priorities 2011:
Main focus is to continue to grow the size of its
network across Austria
Concentration of the resources on the local customer
approach
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Banner Total Sales Format No. of Sales Area Av. Sales Area
(€m) Stores (sqm) (sqm)
Zielpunkt (Plus) 648 H/S D 330 161,370 489
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Banner Total Sales Format No. of Stores Sales Area (sqm) Av. Sales Area
(€m) (sqm)
Lidl established its Austrian office in 1994 and opened its first stores in November
1998, over 30 years after Aldi’s market entry
This late entry means that Lidl still has a relatively small share of the Austrian market
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Lidl currently operates approximately 200 stores
in Austria, which are served from distribution
centres near Salzburg, northern Austria, and
Müllendorf, south of Vienna
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Banner Total Sales Format No. of Sales Area Av. Sales Area
(€m) Stores (sqm) (sqm)
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Banner Total Sales Format No. of Sales Area Av. Sales Area
(€m) Stores (sqm) (sqm)
METRO C&C 793 C&C 12 95,604 7,967
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Challenges and Opportunities
The fight for market leadership is between Rewe and Spar Austria
In Austrian grocery retailing the price has been the main point of distinction
between the players in the market for some years
There is currently a push amongst all retailers for organic / regional / local
food products in a bid to build customer loyalty. All the major players now
carry their own organic private label ranges, as consumers expect to find
organic products in store
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IGD Market Share Methodology
IGD has a single, universal methodology to enable comparisons of market shares and
consolidation levels between countries. It is calculated by comparing retailers’ sales from grocery
formats with IGD’s grocery retail market size.
IGD defines the grocery retail market as all food, drink and non-food products (e.g. health &
beauty, pet care, clothing, DIY) sold through all retail outlets selling predominantly food in a given
country.
This definition includes both modern retail formats such supermarkets and hypermarkets, and
traditional retail formats such as open air markets and traditional food stores such as bakers.
However, it excludes Cash & Carry operations and drugstores/pharmacies and sales tax.
IGD market sizes are ‘top down’, derived from national statistical bodies wherever possible. In all
other cases, the figures published in this report represent IGD estimates and are based on a
consistent methodology and knowledge of local markets.
For each retailer, the turnover used is total sales from grocery format, and therefore excludes
non-food formats (such as DIY, electrical stores, department stores etc). IGD also exclude Cash &
Carry formats and drugstores/pharmacies from this measure, to ensure the data sources are
comparable;
1.Retail turnover is excluding VAT
2.Retail turnover is excluding non-food formats (e.g. furniture, electrical stores etc)
3.Cash & Carry operations are excluded
4.Where known, we have subtracted the Cash & Carry operations of players such as Carrefour
and Rewe to use a pure grocery retail estimate of turnover.
IGD’s market shares differ from panel-based or till-roll markets shares (e.g. from ACNielsen, TNS or
IRI) due to the different methodologies; the latter are based on limited categories/retailers.
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For More Information
Use the IGD Datacentre for key macroeconomic data on Serbia, plus statistics on
retailers’ operations by banner and format
Visit the photo archive for images of retailers operating in Czech Republic
To find out how an IGD Customised Briefing can bring you up to speed on the market
and the key players, email anne.bordier@igd.com
Still can’t find what you’re looking for? Contact us igd@igd.com or 01923 857141
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