Too many shops – city center shops are under pressure to survive

According to the latest economic structure analysis, Klagenfurt is clearly the most important shopping city in Carinthia. Online retail and tens of thousands of square meters of new sales space on the periphery are particularly impacting city center shops. The Koralmbahn from 2025 requires solutions.

Light and shadow in the first economic structure analysis since 2010, which was commissioned by the Chamber of Commerce, the State of Carinthia and the city marketing department. “The companies have an important basis for economic measures before the opening of the Koralmbahn,” says Roland Murauer from the CIMA Institute. With sales of 1.17 billion, Klagenfurt is one of six cities to exceed the billion mark, 385,000 people shop in the state capital . This makes the city considered the top shopping destination in Carinthia. “Klagenfurt has had a population growth of 14 percent in the past 20 years, while Carinthia has only had one percent. Overnight stays have increased by eleven percent, and purchasing power has also increased significantly, amounting to 686 million euros. And four fifths of them stay in the country,” says Franz Ahm, district chairman of the Chamber of Commerce. But there are also negative circumstances. The density of retail space is enormous; an additional 100,000 square meters of dedicated green space has been created. In other cities the numbers are declining. 1166 businesses in the city centerCity retail is coming under pressure. 1166 companies are located in the city center. “But too few people are buying,” says Murauer. “The main enemy is online trading, which has increased by 517 percent. 97 million euros flow into online trading. Declining customer frequency, prominent business closures, more and more vacancies: the city center is not doing well. With 3.8 square meters of retail space per inhabitant, Klagenfurt is the leader in Austria, with Graz and Innsbruck in second place with a modest 2.0 square meters. What the expert recommendsExpert Murauer now gives tips: “The city center needs a new settlement policy. Sticking together helps. There also needs to be more pepper in the companies. No further area expansion is permitted. A cooperative marketing offensive with Northern Italy and Slovenia is needed. Multi-use centers are on the rise. You have to go downtown. Retail businesses have problems in shopping centers. Kindergartens, medical centers, schools, fitness centers and pharmacies are to be located. This ensures long-term success.”
source site-12