Carinthian retailers see first signs of recovery

Trade in Carinthia is showing its first signs of recovery after several difficult years, ORF reported, with sales slightly higher than a year earlier and the number of company insolvencies falling. However, insolvencies remain at a high level.

Retail sales across Austria rose by 2.3 percent in July from the same month last year after adjustment for inflation. In Carinthia, 59 companies became insolvent last year, down from 70 in 2024.

Raimund Haberl, head of the trade division at the Carinthian Chamber of Commerce, said the sector could not yet speak of a sustained recovery. Uncertainty on international markets and rising prices were affecting consumer spending, he said.

“Consumers are very sensitive and are saying: I will keep my money for now and see what happens,” Haberl said. “You feel it every day when filling up your car, because costs have risen extremely and that money is then naturally missing from retail.”

Online shopping remains another challenge. Austrians are expected to spend almost 12 billion euros online this year, with nearly half going to retailers abroad, said Wolfgang Ziniel of the KMU Research Austria institute. Chinese online retailers already account for well over one billion euros, or 10 percent of total online spending, he said, adding that the trend would advance rapidly.

The sector is now placing its hopes on the Christmas business. Traditionally, consumers make many purchases in physical shops during the Christmas season, with their mood playing an important role, according to the report.