Austria's food retail sector is expected to see increased sales of healthy products including fresh fruits and vegetables, buoyed by greater diversification and internationalisation of consumer tastes and strong demand for convenience, according to a new report published by the USDA.
The report stated that variety will also remain a key driver of sales, with seasonal products remaining at the forefront of the entire food market.
Austria's grocery retail sector is currently dominated by German discounter groups such as Rewe, Aldi and Lidl, with competition from domestic companies like Spar.
The USDA suggests discount food retailers Hofer and Lidl are 'expanding rapidl' across the country, contributing to growth in the number of discount stores. This figure is set to surpass 1,200 outlets this year, with Hofer leading the way with 395 stores.
'This rapid growth is not only driven by the economic slowdown occuring in Austria and globally,' said the report. 'Hard discounters in Austria are attracting customers by also offering a wide range of low-priced, good-quality products, both food and non-food.'
Despite the economic recession, which is expected to limit growth in Austria this year, expenditure on food products is not likely to decline, added the USDA. 'Consumers tend to save money first with goods that are not essential,' it commented. 'Losses take place in the electronics, clothes, cars and jewellery sectors, but not so much in food retail.'
No comments yet