Pandemic caused online delivery services to boom in Austria – Coronavirus Vienna
In 2021 there was a strong influx of online grocery delivery services. With Flink, Jokr and mjam market alone three new providers have entered the domestic market.
The corona pandemic, which will last almost two years, is causing many retailers to throttle their physical expansion and instead invest in their online stores.
In 2020 only nine international retailers entered the Austrian market, this year there were 22. In the past, over 30 foreign labels were able to gain a foothold in Austria in one year.
Trend in online delivery services
Walter Wölfler from the real estate consultant CBRE sees a trend in online delivery services, e-mobility as well as in the discount and luxury sectors. “The gap is much wider, the middle is having a hard time,” said Wölfler, who is responsible for the retail business in Austria and CEE at CBRE, in an interview with APA.
In the past, international retailers from the fields and clothing were drawn to Austria, but now more and more concepts are coming from other industries. There is a strong influx of online grocery delivery services. With Flink, Jokr and mjam market alone three new providers have entered the domestic market.
Well-prepared start-ups such as Gorillas or Getir that are hungry for expansion also want to take the step to Austria. “The so-called dark stores, shops on the ground floor in B and C locations from where the customers believe them. The corona-related gastro closings would have accelerated the market entry of such providers. The online supermarket Gurkerl.at is expanding in Vienna and the surrounding area, and delivery agents such as Alfies, mjam and Hausfreund are also active.
New entrants in Austria, especially in the discount and luxury sectors
Classic gastronomy concepts are also still being drawn to Austria. The new location of the US burger chain Five Guys on Graben in Vienna caused a real hype. Royal Donuts and Freddy Fresh Pizza are also new.
There are also new names in the discount area. The Polish low-cost chain Pepco and the discount fashion chain HalfPrice have replaced the shoe retailer CCC, also from Poland. On the other hand, retailers in the luxury segment such as Balenciaga and Isabel Marant have recently entered the Austrian market. “Prime locations are still very much in demand,” said Wölfler.
The air is getting thinner for classic fashion retailers who cover neither the discount nor the luxury segment. The classic shoe range has also declined, although the “sneaker wave” is still rolling, as Wölfler admitted.
Potential in e-mobility
The retail expert sees potential for e-mobility concepts. This year, with the luxury electronics brand Polestar and the e-bike supplier Qwic, two companies from this area have entered the Austrian market.
“There is a lot in the pipeline again for 2022.” The internationally active furniture store Natuzzi Italia, for example, is already fixed and plans to open its first flagship store in Vienna in March.