Many retailers rely on discount campaigns to generate sales.
Although the Corona economic aid is being increased, a wave of bankruptcies threatens. Every third trader believes that they will not be able to survive the next six months.
The trade association welcomes the increase in Corona economic aid by 430 million euros, which became known on Wednesday, but indicates that this could come too late for many companies. A survey shows that one in four (26 percent) of the shops that are open cannot currently pay all due bills. According to the association, four out of ten traders have acute liquidity problems. Even worse: More than a third (35 percent) of all Austrian retailers assume that they will not survive the next six months.
The short duration of the opening and open agreements on the rent, lack of funds for the purchase of goods and social security and loan payments, “but also absent customers lead to more than a third of all domestic dealers predicting that they will not be able to survive the next six months”, says trade association managing director Rainer Will.
Almost two thirds of the companies are likely to survive the crisis according to their own assessment, but with some serious financial losses, it is said. Four out of ten dealers have acute existential fears. According to the trade association, 22,500 Austrian shops have had to keep closed for up to 90 shopping days since the beginning of the pandemic. During the three hard lockdowns, the industry had to cope with sales losses of up to one billion euros per week.
