(31.01.2024) Swiss retailers demonstrated their resilience last year. Sector sales increased by 3.6% in November compared to the previous year, followed by a slight decline of 1.3% in December, according to the Swiss Retail Federation.
The year-end was marked by two challenging factors for the Swiss retail industry: the calendar and the weather. Traditionally busy days for the sector, such as Christmas Eve and New Year's Eve coincided with Sundays. Additionally, adverse weather conditions and cold temperatures limited mobility. The modest 1.3% year-on-year decline in December was therefore not a cause for alarm.
Despite a largely disadvantageous economic environment, including inflation, supply chain issues, global geopolitical instability, and recession risks, the industry recorded revenues similar to those of 2022. The food sector was the main driver of retail trade growth, while the non-food sector was less dynamic, even experiencing a decline in the second half. Furthermore, online commerce appears to have lost ground for the second consecutive year.
Pressure on margins is expected to remain high in 2024, primarily due to online commerce competition, relatively low consumption levels across Europe, high supply and energy costs, and continued strong regulatory pressure.
According to the Swiss Retail Federation, more than a third of retailers anticipate decreased sales in 2024. The outcome will depend on the evolution of armed conflicts in Ukraine and the Middle East, the resilience of supply chains, and inflation levels in Switzerland and abroad.
Last modification 31.01.2024
