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On the first day of the full opening, the managing director of the trade association Rainer Will recognizes a “unique effect”. In general, the balance is “but cautiously positive”. The WKO is also holding back optimism: the loss of sales can no longer be compensated.
On the first day of the full opening of the operation after the six-week shutdown, managing director of trade association Rainer Will recognizes a “one-off effect” on sales. Overall, the balance is “but cautiously positive,” as it said on Saturday.
Long lines formed in front of furniture stores, electronics chains and hair salons on Saturday. In the coming days, however, Will expects “a decrease in income” again. Only with the reopening of the catering trade on May 15 and the associated increase in frequency in city centers, shopping streets and shopping malls will there be a stabilization of sales, albeit at a lower level than before the crisis. Foreign tourists would remain missing as an important source of income.
Commerce is still “far from the hurray,” judges the Chamber of Commerce. Division President Rainer Trefelik expects a maximum of 60 percent of a conventional day of sales. Losses of sales due to the mandatory interruption are unrecoverable for most distributors and companies in Austria. “There will still be sales here and there,” says WKÖ Commercial President Peter Buchmüller. “At the end of the year there will be a drop in sales.” Financially, it will be “very scarce” for many retail companies. If there were more liquidity for companies in a few months, then it might be too late. “There will be merchants who cannot survive.”
Great discounts for quick money
In order to quickly bring money to the cash register, many retailers are now using discount campaigns. According to Will, financial aid for the companies “unfortunately has not yet arrived.” He warned of “a huge liquidity trap that will worsen in the coming weeks.” However, Trefelik warns of “discount battles,” which are “at most rapid liquidity acquisition but not sustainable crisis management.” You have to go up every day until customers re-experience the shopping experience despite Corona’s actions.
To boost the economy and consumer spending in the crown crisis, the trade association continues to push for early tax reform. The first step is to reduce the wages of low-wage earners to start the economic engine.
(APA)
