Austria - Country Presentation (Full)

Country Presentation
Austria
Updated March 2011
© www.igd.com/analysis
Contents
Retailers covered include:

Map
Demographics
Political Outlook
Economic Overview
The Retail Market
Europanel Data
Top Retailers
Challenges and Opportunities
Country Facts
 Area: 83,879 sq. km
 Capital City: Vienna
 National Currency: Euro
 Population (2010):
8.37 million inhabitants
 Population Density:
99 people/km
 President: Heinz Fischer
 Ruling Party:
SPÖ-ÖVP coalition
 Chancellor of Austria:
Werner Faymann
Source: CIA, Statistik Austria
Demography: Populations of States
Region Population Area (sq km) Population % Total

Density Population
(people/km)
Vienna 1,698,822 415 4,097 20.3
Lower Austria 1,607,976 19,186 84 19.2

Upper Austria 1,411,238 11,980 118 16.8
Styria 1,208,372 16,401 74 14.4
Tyrol 706,873 12,640 56 8.4

Carinthia 559,315 9,538 59 6.7
Salzburg 529,861 7,156 74 6.3

Vorarlberg 368,868 2,601 142 4.4
Burgenland 283,965 3,962 72 3.4
Source: Statistik Austria 2010
Demographics
Population Growth Forecast (000’s) Population Split by Age, 2009 (%)
15.0 17.5
67.5
www.igd.com/analysis/datacentre
Source: Statistik Austria 2010
Political & Economic Outlook
The good working relationship between the Social Democratic Party and the Austrian
People’s Party will sustain their grand-coalition government
Austria should continue to build on its good relations with the newer EU member states
and support the EU's expansion to the western Balkans, particularly Croatia but it
remains strongly opposed to Turkish EU membership
Being small, Austria has traditionally been an open, export-oriented country. Its strength
lies in its small and medium-sized companies, many of them family-owned, that make
highly specialised, top-quality products and export them all over the world
World trade recovery to pre-crisis levels along with the strong economic growth of
Germany - Austria’s main trade partner - driven the Austrian economy to grow over the
course of 2010
The rapid economic recovery is likely to continue. For 2011 Austria expects economic
growth of 1.6%, with a plus of up to 2% forecast for 2012
Unemployment has not risen as steeply as in other European countries, partly due to
government intervention with subsidised programmes for employers
Due to continued positive development on the labour market, private consumption is

expected to remain stable and move upward
Economic Overview
2007 2008 2009 2010 2011e
GDP (Nominal €bn) 272.0 283.1 274.3 283.5 292.6
GDP Growth (%) 3.55 2.05 -3.82 0.3 1.59
GDP per Capita (€) 32,851 34,148 33,051 34,077 35,126
Unemployment(%) 4.40 3.80 4.80 4.13 4.20
Consumer Price
2.20 3.22 0.40 1.50 1.74
Inflation (%)
Food Price Inflation

2.20 3.20 0.40 1.69 3.20
(%)
Source: IGD Datacentre, IMF Statistics 2011 www.igd.com/analysis/datacentre
Grocery Retail Market Sizes 2010
Top 10 Western European Markets Top 10 Global Markets
Country Grocery Retail Country Grocery Retail

Market Market
(€bn) (US$bn)
1. France 208.17 1. USA 881.84
2. Germany 162.46 2. China 789.91
3. United Kingdom 161.96 3. Japan 359.96
4. Italy 129.56 4. India 350.38
5. Spain 97.05 5. Brazil 289.92
6. Switzerland 39.77 6. France 276.04
7. Belgium 34.92 7. Russia 256.38
8. Netherlands 34.46 8. Germany 215.43
9. Sweden 24.55 9. United Kingdom 214.60
10. Greece 23.72 10. Italy 171.80
12. Austria 20.85 37. Austria 27.65

Source: Retail Analysis Datacentre
The Retail Market
2007 2008 2009 2010 2011e

Consumer Spend (€bn) 146.61 153.43 152.25 156.50 161.22
Total Retail Market (€bn) 47.87 49.48 50.30 52.08 53.73
Grocery Retail Market (€bn) 18.81 19.60 20.13 20.85 21.54
Grocery Retail Spend / 2,272 2,365 2,425 2,506 2,586

Capita (€)
Grocery as a % of Retail 39.3% 39.6% 40.0% 40.0% 40.0%
Source: IGD Datacentre 2011
IGD Grocery Retail Market corresponds to the total annual turnover (excluding VAT) of
retail outlets predominantly selling food. It includes the sales of non-food articles (i.e.
health & beauty, pet care, clothing, DIY etc) sold by hypermarkets, supermarkets,
discounters, neighborhood stores, specialised food stores (bakeries, butchers, etc) and
open markets. It excludes all cash & carry, delivered wholesale, foodservice and
drugstores/chemists
Retail Consumer Spend Per Capita Austria
Source: IGD Datacentre 2011
The Grocery Retail Market – Structure By Format
The most significant change in the market over the past decade has been the decline of
the superettes and traditional grocers, as the major retailers have become a more
dominant force
The Austrian grocery industry is a highly concentrated market where the three largest
retail players account for approximately 67% percent of the total sales volume
The Austrian market is dominated by German retailers, largely due to the linguistic,
cultural and historical links between the two countries
Rewe International - the Austrian-based affiliated company of the German Rewe Group
- is the number one on the domestic market ahead of Spar Austria and Hofer
The hard discounters Hofer and Lidl have an overall market share of around 18 per
cent. Both retailers grew strongly between 2003 and 2007 before their performance
stagnated
There is still a general ban on Sunday trading, although this is lifted in some major
tourist areas
Top Grocery Retailers 2010
Retailer Grocery Sales % Change IGD Grocery No. of

(€m) Grocery Sales Retail Market Grocery
09-10 Share (%) Stores
Rewe Austria 5,744 +0.3% 27.5% 1,926
Spar Austria 5,129 +4.5% 24.6% 1,463
Hofer (ALDI) 3,204 +3.9% 15.4% 430
Markant Austria 1,005 +9.0% 4.8% 1,434
Tengelmann 648 +3.6% 3.1% 330
Lidl 606 +5.0% 2.9% 215
M-Preis 540 +7.3% 2.6% 187
Source: IGD. Note: excludes Cash & Carry and members club operations
Market Share - Austria
Austria Market Share - 2010

2009 2010 2011e
Rewe Austria 28.4% 27.5% 27.4%
Spar Austria 24.4% 24.6% 24.8%
Hofer (Aldi) 15.3% 15.4% 15.4%
Markant 4.6% 4.8% 5.0%
Tengelmann 3.1% 3.1% 3.1%
Lidl 2.9% 2.9% 3.0%
M-Preis 2.5% 2.6% 2.7%
Source: IGD Market Share. The methodology is detailed at the end of this presentation
Total Sales Sales Area Av. Sales Area
Banner Format No. of Stores
(€m) (sqm) (sqm)
Billa, Merkur 4,102 S/S 1,120 1,240,000 1,107
Adeg 760 C/F 482 n/a n/a
Penny 695 H/S D 302 166,100 550
Magnet 187 H 22 65,494 2.977
Bipa 602 H&B 571 142,750 250

*Note= Rewe’s consolidated sales from these operations. www.igd.com/analysis/datacentre
Key: C/F = Convenience/Forecourt, H/S D= Hard/Soft Discount, S/S = Superstore/Supermarket, H = Hypermarket
H&B = Health & Beauty
Rewe entered the Austrian market in 1996

In Austria, Rewe operates several retail chains: supermarkets Billa and Merkur,
discounter Penny, health & beauty chain Bipa and convenience stored Adeg
Rewe has a minority share in Sutterluetty, a small independent food retailer
In 2010, Rewe’s chains Billa, Merkur and Bipa grew
strongly, while Penny and Adeg had weaker
performance
Rewe Austria is progressively upgrading its Merkur

stores, including improving the presentation islands
for its fresh food, convenience and organic ranges
In April 2010, Rewe announced it was placing

increased focus on traceability and local sourcing for
many of product ranges in its Billa format in Austria
Rewe plans to develop its retail chain Adeg. It will

introduce a modern shopping concept and
comprehensive trainings for store managers in order
to attract customers
The new Adeg private label range "Adeg mit Leib und
Seele“ was launched in January 2011 and aimed to boost
the regionality of Adeg
All products under the brand "Adeg mit Leib und Seele“
originate from Austria. The range was launched with 11
products and will be extended up to 100 SKUs in the near
future
In February 2011, Rewe introduced its new standard

umbrella PL range at Billa, which will replace the existing
Quality First label and some branded products
“Billa” PL products was started with dairy products. Rewe

plans to launch 250 SKUs in food categories only by the
end of 2011
“Billa” products are 10-20% cheaper than the equivalent

brand products and claim to have the same quality as
brands
Billa’s private label share is approx 20% from total sales
Total Sales Sales Area Av. Sales Area
Banner Format No. of Stores
(€m) (sqm) (sqm)
Interspar
1,017 H 64 160,640 2,510
Eurospar / Spar 4,100 S/S 1,367 862,577 631
Spar Express 12 C/F 11 1,551 141
Source: IGD Datacentre 2011 www.igd.com/analysis/datacentre

Key: S/S = Superstore/Supermarket, H= Hypermarket, C/F = Convenience/Forecourt
Austria has been a member of International Spar since 1954

In 1970, Spar Österreichische Warenhandels-AG was established, through the
merger of all 10 existing wholesale companies
Spar Austria is the largest privately owned company in Austria
The majority of the Spar Austria stores are owned by independent retailers
Spar, Vienna
During the last few years, Spar Austria has
modernised and increased the selling area of a
significant number of both independent retailer and
company-owned shops
There has been a particular emphasis on fresh foods

and local sourcing in hypermarkets, offering
customers a comprehensive range of fresh products,
cheese, fish, meat and snacks
Spar offers multi-tier private label ranges, consisting

of approx 3,000 products under various the PL
brands in different categories and price segments (S-
Budget, Spar, Spar Natur, Spar Vital, Spar Premium
etc). PL share is 34% from total sales
Spar’s priorities in 2011:
 Further expansion of convenience chain, with

focus on high frequented city locations
 Expansion of Interspar hypermarket format Source: Retail Analysis photo gallery
Interspar, Salzburg
New INTERSPAR hypermarket flagship store
In March 2010, a new INTERSPAR hypermarket

flagship store was opened in Salzburg-Taxham. The
store represents the new food marketplace concept in
combination with non-food worlds, offering customers
a modern shopping experience
Highlights of the store:
New floors and shelves, a clearly structured and

optimised arrangement of the departments
Innovative lighting concepts for the improved

presentation of products
Reduction of CO2 through innovations in energy

saving freezing technologies
Improvement of fresh food departments, with strong

focus on regional suppliers and regional food products
offered at service counters
Source: SPAR
Banner Total Sales Format No. of Sales Area Av. Sales Area
(€m) Stores (sqm) (sqm)
Hofer 3,204 H/S D 430 301,000 700
Key: H/S D = Hard/Soft Discount
ALDI Sud entered Austria in 1967 with the acquisition of the Hofer chain
Austria is ALDI's second most important market in Europe, after Germany
Aldi operates seven regional divisions. Each serve between 40 to 70 stores and are
located at Hausmannstaetten, Rietz, Sattledt, Stockerau, Trumau, Weissenbach and
Loosdorf
Hofer offers 850 basis SKUs and 30-40
promotional SKUs, which rotate twice a week
Hofer continuously extends its service offers from

mobile phones, videos and photo development. It
views financial services as an opportunity, and is
also looking to extend the range of holiday and
travel services it offers
In 2010, Hofer opened 30 Diskont petrol stations

in its store car parks in all regions of Austria.
There are plans to open another 70 petrol stations
until the end of 2012
Hofer’s assortment consists mostly of private

labels. Company’s strategy is to avoid listing
brands where possible
Hofer seeks to differentiate its offer by introducing

its own organic private label range ‘Zurueck zum
Ursprung’
Source: Retail Analysis photo gallery
Banner Total Sales Format No. of Stores Sales Area Av. Sales
(€m) (sqm) Area (sqm)
Markant 1,005 S/S 1,434 616,620 430
Nah & Frisch 431 C/C 39 132,600 3,400

Key: S/S = Superstore/Supermarket, C/C= Cash & Carry
Markant Austria is a member of EMD. Set up in 1969 as a buying cooperative for

family-owned businesses, it aims to guard the independence of small and medium-
sized traders in Austria
There are 36 member retailers, which include:
There are 12 operational shareholders, including
grocery retailers and drugstores. The key grocery
players are:
Pfeiffer Handel GmbH
Brückler Grosshandelsges mbH
Wien Kastner Großhandels Ges. mbH, Zwettl
Julius Kiennast
Wedl & Dick Ges mbH
ZEV-Markant independent retailers operate individual
fascias and the ‘Nah & Frish’ banner
Pfeiffer/Unimarkt is the largest group within the
cooperative, following the acquisition of Hornig in 2005
and the subsequent expansion of the Unimarkt
franchise chain
Group’s priorities 2011:
Main focus is to continue to grow the size of its
network across Austria
Concentration of the resources on the local customer
approach
Zielpunkt (Plus) 648 H/S D 330 161,370 489
Kik, OBI 455 O 325 315,106 970
Key: H/S D = Hard/Soft Discount, O = Other non-grocery
Tengelmann entered the Austrian market in 1976

In Austria, Tengelmann used to operate discount
stores under the fascia of Zielpunkt
In May 2010, Tengelmann decided to sell Zielpunkt
to the Luxembourg-based investment funds bluO.
Zielpunkt was Tengelmann’s last foreign discount
subsidiary
bluO plans to further operate the company under
the name Zielpunkt
Tengelmann continues to operate its Kik textile
discount chain and OBI DIY stores in Austria
Banner Total Sales Format No. of Stores Sales Area (sqm) Av. Sales Area
(€m) (sqm)
Lidl 606 H/S D 215 139,750 650
Key: H/S D = Hard/Soft Discount
Lidl established its Austrian office in 1994 and opened its first stores in November
1998, over 30 years after Aldi’s market entry
This late entry means that Lidl still has a relatively small share of the Austrian market
Lidl currently operates approximately 200 stores
in Austria, which are served from distribution
centres near Salzburg, northern Austria, and
Müllendorf, south of Vienna
Lidl offers an average of 1,300 SKUs in its

Austrian outlets. Its assortment comprises private
labels, brands and local/regional products
The Austrian operations are being used as the

base from which to expand into the Balkan
States, including Slovenia and Croatia
The new distribution structure may well be used

to support European distribution into Eastern
Europe, rather than simply to support activity in
Austria
In December 2010, Lidl started to offer low-cost

ticket cards worth EUR 73 in cooperation with the
German railway operator Deutsche Bahn
Source: Retail Analysis photo gallery
Super M 34 H 9 22,500 2,500
MPREIS 506 S/S 178 267,000 1,500
Source: IGD Datacentre 2011 Key: S/S = Superstore/Supermarket, H= Hypermarket www.igd.com/analysis/datacentre
MPREIS is a regional, family-owned operator with a strongly

differentiated concept. Created by Therese Mölk in the
1920s, the company prides itself in its human values and
aspiration for quality
Based in Tyrol, MPREIS works closely with local suppliers to

create a unique and differentiated offer for its customers
MPREIS offers an average of 10,000 SKUs, which includes

500 organic SKUs and 2,000 regional products from Tyrol
The retailer is also well-known for its architectural stance and

has been dubbed the ‘Sexy Supermarket’
Each store is designed by a different architect and includes

the use of environmentally friendly materials
METRO C&C 793 C&C 12 95,604 7,967
Media Markt, Saturn 1,078 O 42 131,628 3,134

Key: C&C = Cash & Carry, O = Other non-grocery
METRO C&C entered the Austrian market in 1971
METRO C&C stores are in average 8,000sqm and offer

an assortment of more than 48,000 SKUs
Metro also operates its Media Markt consumer

electronics chain in Austria
In 2010, Media Saturn announced the acquisition of 7

new locations of which 4 are former branches of the
Austrian bankrupted Cosmos chain
METRO priority for 2011 is to expand by developing

delivery services and strengthening own brands
Challenges and Opportunities
The fight for market leadership is between Rewe and Spar Austria
Discount supermarkets in Austria are struggling to increase their market

share
In Austrian grocery retailing the price has been the main point of distinction
between the players in the market for some years
In light of increasing price competition, retailers will need to differentiate

their trading strategies to move the focus away from pure price
There is currently a push amongst all retailers for organic / regional / local
food products in a bid to build customer loyalty. All the major players now
carry their own organic private label ranges, as consumers expect to find
organic products in store
Sustainability will continue to be an important part of the retail sector in

Austria
IGD Market Share Methodology
IGD has a single, universal methodology to enable comparisons of market shares and
consolidation levels between countries. It is calculated by comparing retailers’ sales from grocery
formats with IGD’s grocery retail market size.
IGD defines the grocery retail market as all food, drink and non-food products (e.g. health &
beauty, pet care, clothing, DIY) sold through all retail outlets selling predominantly food in a given
country.
 This definition includes both modern retail formats such supermarkets and hypermarkets, and
traditional retail formats such as open air markets and traditional food stores such as bakers.
However, it excludes Cash & Carry operations and drugstores/pharmacies and sales tax.
IGD market sizes are ‘top down’, derived from national statistical bodies wherever possible. In all
other cases, the figures published in this report represent IGD estimates and are based on a
consistent methodology and knowledge of local markets.
For each retailer, the turnover used is total sales from grocery format, and therefore excludes
non-food formats (such as DIY, electrical stores, department stores etc). IGD also exclude Cash &
Carry formats and drugstores/pharmacies from this measure, to ensure the data sources are
comparable;
 1.Retail turnover is excluding VAT
 2.Retail turnover is excluding non-food formats (e.g. furniture, electrical stores etc)
 3.Cash & Carry operations are excluded
 4.Where known, we have subtracted the Cash & Carry operations of players such as Carrefour
and Rewe to use a pure grocery retail estimate of turnover.
IGD’s market shares differ from panel-based or till-roll markets shares (e.g. from ACNielsen, TNS or
IRI) due to the different methodologies; the latter are based on limited categories/retailers.
For More Information
Visit the Austria hubpage on Retail Analysis
Use the IGD Datacentre for key macroeconomic data on Serbia, plus statistics on
retailers’ operations by banner and format
Visit the photo archive for images of retailers operating in Czech Republic
Got a MyReports subscription? Try checking our International Research reports
To find out how an IGD Customised Briefing can bring you up to speed on the market
and the key players, email anne.bordier@igd.com
Still can’t find what you’re looking for? Contact us igd@igd.com or 01923 857141

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Country Presentation

Updated March 2011

Retailers covered include:

The Retail Market

Challenges and Opportunities

 Area: 83,879 sq. km

 Capital City: Vienna

 National Currency: Euro

 President: Heinz Fischer

Source: CIA, Statistik Austria

Region Population Area (sq km) Population % Total

Lower Austria 1,607,976 19,186 84 19.2

Styria 1,208,372 16,401 74 14.4

Tyrol 706,873 12,640 56 8.4

Salzburg 529,861 7,156 74 6.3

Burgenland 283,965 3,962 72 3.4

Source: Statistik Austria 2010

Population Growth Forecast (000’s) Population Split by Age, 2009 (%)

Due to continued positive development on the labour market, private consumption is

2007 2008 2009 2010 2011e

GDP (Nominal €bn) 272.0 283.1 274.3 283.5 292.6

GDP Growth (%) 3.55 2.05 -3.82 0.3 1.59

GDP per Capita (€) 32,851 34,148 33,051 34,077 35,126

Unemployment(%) 4.40 3.80 4.80 4.13 4.20

Food Price Inflation

Source: IGD Datacentre, IMF Statistics 2011 www.igd.com/analysis/datacentre

Top 10 Western European Markets Top 10 Global Markets

Country Grocery Retail Country Grocery Retail

2. Germany 162.46 2. China 789.91

3. United Kingdom 161.96 3. Japan 359.96

4. Italy 129.56 4. India 350.38

5. Spain 97.05 5. Brazil 289.92

6. Switzerland 39.77 6. France 276.04

7. Belgium 34.92 7. Russia 256.38

8. Netherlands 34.46 8. Germany 215.43

9. Sweden 24.55 9. United Kingdom 214.60

10. Greece 23.72 10. Italy 171.80

12. Austria 20.85 37. Austria 27.65

2007 2008 2009 2010 2011e

Grocery Retail Spend / 2,272 2,365 2,425 2,506 2,586

Retailer Grocery Sales % Change IGD Grocery No. of

Rewe Austria 5,744 +0.3% 27.5% 1,926

Spar Austria 5,129 +4.5% 24.6% 1,463

Hofer (ALDI) 3,204 +3.9% 15.4% 430

Markant Austria 1,005 +9.0% 4.8% 1,434

Tengelmann 648 +3.6% 3.1% 330

Lidl 606 +5.0% 2.9% 215

M-Preis 540 +7.3% 2.6% 187

Austria Market Share - 2010

Rewe Austria 28.4% 27.5% 27.4%

Spar Austria 24.4% 24.6% 24.8%

Hofer (Aldi) 15.3% 15.4% 15.4%

Markant 4.6% 4.8% 5.0%

Tengelmann 3.1% 3.1% 3.1%

Lidl 2.9% 2.9% 3.0%

M-Preis 2.5% 2.6% 2.7%

Adeg 760 C/F 482 n/a n/a

Penny 695 H/S D 302 166,100 550

Magnet 187 H 22 65,494 2.977

Bipa 602 H&B 571 142,750 250

Rewe entered the Austrian market in 1996

Rewe Austria is progressively upgrading its Merkur

In April 2010, Rewe announced it was placing