University of Linz: Extension of the third lockdown causes an additional loss of EUR 600 million in sales in closed retail sectors.
Austria is now in a tough corona lockdown for the third time, in which, with a few exceptions, all business is closed. According to calculations by the Johannes Kepler University Linz (JKU), the three closing waves together result in a loss of sales in the closed non-food industries of around 8.5 billion euros. Should the third lockdown be extended again until the end of January, the loss in sales would increase to a total of 9.1 billion euros.
It has been clear since Monday that the third lockdown will be extended by one week up to and including January 24th. The government had originally planned that with a negative corona test one would have been able to visit restaurants, hotels and shops again from January 18, the opposition parties did not agree to this plan. According to the JKU, just extending the third lockdown by a week causes an additional loss of sales in the closed retail sectors of around EUR 600 million (gross).
From the point of view of the JKU researchers, the extension of the current lockdown continues the existing trend: the savings rate is increasing, online retailing is gaining further market share, which means that consumers are weaning themselves off from stationary shopping.
“In fact, our figures only show the direct damage to the non-food retail sector and the medium-term and long-term consequences remain hidden to many. For the next few years it is to be feared that bloodletting in stationary retail will result from the increased number of companies leaving the market Austria’s retail structure will lastingly change and Austria is threatened with local supply gaps, especially in rural areas (not only in the area of small grocery stores) “, study authors Christoph Teller and Ernst Gittenberger from the Institute for Trade, Sales and Marketing are quoted in a communication. The decline of the shopping streets, especially the less frequented B and C locations, will continue at an accelerated rate.