(06.12.2023) Swiss retailers expect a turbulent 2024. Despite a promising 2023, more than a third (36%) of businesses believe that the next fiscal year will end with below-average results, according to the Swiss Retail Federation.
Over half (57%) of retailers anticipate average results, while only a small minority (6%) predicts higher revenue for the next year.
The sector fears the impact of rising prices on purchasing power, considered a major risk by 75% of surveyed players. Additionally, instability in the global geopolitical context, marked by conflicts in Ukraine and the Middle East, could also lead to a deterioration in consumer sentiment.
On the domestic front, businesses are particularly concerned about rising costs of energy, supplies, and logistics. These components worry almost all (94%) of the respondents. Two in five retailers surveyed (40%) are even "very concerned" about energy and logistics prices. This situation could further intensify the price war, especially in the face of competition from digital platforms like Amazon or Temu.
The Swiss Retail Federation emphasizes the upcoming challenges for the retail trade. The association calls for a regulatory truce at a time when various projects aim to introduce additional disclosure requirements or tightening in the field of warranty law. If these measures were to be adopted, the retailers' federation fears additional administrative and financial burdens, "against supposed very uncertain benefits for consumers."
Last modification 06.12.2023
