The number of branches is increasing: Action, Teddy and Co

“Although overall purchasing power is increasing on average, the low-income population is increasing – an important target group for these companies,” RegioPlan, a company specializing in market and location analysis in the retail sector, said in a press release.

The leading players in the non-food segment – ​​Action, TEDi, KiK, NKD and Takko – have significantly expanded their presence in Austria in recent years and, according to RegioPlan, already operate 1,000 branches across the country.

Large chains and family businesses

The Action chain, founded in the Netherlands in the early 1990s, recorded tremendous growth. Since entering the market in 2015, the company has already opened 140 branches in Austria. German company TEDi can now be found in 180 locations, according to RegioPlan. In 2019 there were 135. KiK, NKD and Takko also have more than 700 branches.

IMAGO/Manfred Segerer

Action now operates 140 branches throughout Austria

Polish chain Pepco has experienced rapid expansion. According to RegioPlan, the company has expanded to 59 locations since entering the Austrian market in 2021 with 29 branches.

The Tyrolean family business Aus & Ross has expanded its presence and is represented with 17 branches in four federal states. German family business Thomas Philips entered the domestic market in 2022 with seven branches. Clothing discounter Primark has five locations in Austria, while TK Maxx has 18.

Infection was unable to reduce growth

Unlike other retail segments, the coronavirus pandemic has not slowed the expansion of non-food discounters. In addition to differences in purchasing power among populations, RegioPlan identified other factors for growth.

A wide and affordable product range encourages customers to make spontaneous purchases with its “un-Googleable products”. Advertising discounts are a counter-movement to online purchases, Romina Geni, managing director of RegioPlan, told ORF.at in 2021. While online shopping is more or less a targeted search, non-food discounts are all about impulse buys. Consumers will decide on their own and low price also plays a role. Shopping is all about the experience and being surprised by the offers.

The image shows the TEDi branch in Vienna.

ORF/Patrick Bauer

Discounts attract you with “un-Googleable” products

Added to this are rental prices for retail space, particularly in shopping centres, seen post-pandemic. This enables favorable expansion opportunities for discounts, sometimes in first-class locations.

Competitive discount portals

Given the combination of low prices, a large product selection and good and very good locations, discounters are likely to continue their expansion in Austria.

In RegioPlan's view, the “successful course” can only be stopped by two “trends”. First, through the changing behavior of consumers, such as fast fashion trends, environmental concerns or reluctance to consume. Second, it is rapidly gaining prominence through Chinese online portals such as Temu and Sheen.

Pioneering Euro shops

A pioneer in the cheap segment for a long time, especially in the cities: Under various names like Discount, Best Price, Euro Shop, it offers a wide range of products – from household goods to electrical appliances, tools to textiles, cleaning products to toys. Although the appearance is often similar to the yellow or red shop design, most shops are run by individual entrepreneurs. Only occasionally are several shops together.

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