••• By Georg Sohler
It’s not a problem that only affects Austria: Anyone who leaves the large metropolitan areas behind them inevitably encounters regional centers where, away from the town centers, supermarkets are stacked one on top of the other at the roundabout. The further you get from larger towns, the fewer shopping opportunities there are. According to RegioData, in 28% of the 2,093 municipalities there are no longer any full-range suppliers, that is 580. If the definition of local supplier is a little broader, according to Statistics Austria, 18% (or 382 municipalities) do not have one.
This is not a good development, as the number of communities without a grocery store across Austria increased by a good six percent between 2011 and 2021. If you don’t have a local supplier within walking distance, you have to get in the car for every liter of milk. The retail parks around smaller cities are anything but ideal from a climate protection perspective, as they also contribute to soil sealing. The high personnel costs make it difficult for smaller shops to survive. They also play an important role in coexistence. So what to do?
SB is (not) a solution
Self-service boxes are a possible solution, or so one would think. With a debit card and app, people could at least buy the most important groceries around the clock. In many places, this affects commuters or people who work in jobs that do not follow the typical 9-to-5 working hours. In February 2024, the Constitutional Court ruled that such solutions from Unimarkt not may be open around the clock. According to the operator, this would be economically necessary.
However, according to the VfGH, such boxes with access regulations are not goods dispensing facilities such as cigarette machines and therefore they must adhere to the legal maximum limit of 72 hours, which the Opening Hours Act generally stipulates for retailers. As a result, the company has closed all boxes and still feels it is in the wrong.
Antiquated regulations
The facts: Within the framework of basically 85 hours of opening time (Mon-Fri 6 a.m. to 9 p.m., Sat 6 a.m. to 6 p.m.), the law allows a maximum of 72 hours of total open time per calendar week. State governors can also decree that they can stay open for commuters or in tourist areas for longer than 72 hours or outside of core times. There are plenty of exceptions, such as airports and train stations, sales in the hospitality industry, gas stations, barracks areas, markets or vending machines. The vending machine shops that already exist in some cities and are allowed to stay open around the clock are not covered by this regulation.
For those like Unimarkt or Rewe who would like to offer self-service options, this is incomprehensible. “The antiquated opening times in Austria contradict customers’ desire for more flexibility; This particularly affects commuters,” explains Rewe company spokesman Paul Pöttschacher. Bakeries can open earlier, but in the evening people who need it only have the (more expensive) gas stations or train stations to purchase any necessities.
Unimarkt boss Andreas Haider is outraged by this: “Nobody in Austria understands that. Here the legislature forgot to adapt the laws from 1983. At the time, no one could have imagined what could be achieved today with modern technology, so this law needs to be reformed immediately.”
Some things are more the same
“This unequal treatment makes it more difficult to operate innovative self-service locations in an economically viable manner,” Pöttschacher continues, and would like “self-service concepts (hybrid concepts and self-service formats) to be on an equal footing with vending machine shops.” Why you can get something in a vending machine shop using a debit card at 9:30 p.m., but not according to the same principle at the same time in the sales room, actually seems questionable.
As Unimarkt boss, Haider is already a pioneer in modernity with Nah&Frisch. The hybrid shopping model has been in place there for over a year, which Rewe merchants are also testing – for example in the form of a self-service box in Wiener Neudorf or by independent Rewe merchants with hybrid concepts. In this way, locations can be preserved where “a traditional supermarket is not worthwhile”. A combination of operation and access through a registered card or app at times when no one is or can be in the store is successful, as Haider says: “Many Nah&Frisch locations that have switched to hybrid make up to 30 percent more sales , as you can now take advantage of the maximum opening times.”
But be careful!
Nah&Frisch managing director Hannes Wuchterl also confirms the “sales boost” for merchants. Personnel costs are high everywhere; Anyone who is in a less frequented location can improve profitability through the hybrid concept. He sounds the alarm on the matter: “If opening hours are significantly expanded in combination with hybrid solutions, then a Pandora’s box will open.”
He explains: “Employees will then feel compelled to work at less convenient times. Or they will be replaced by machines, and if that happens on a large scale, we must all be clear about what that means for jobs.” In addition, the vending machine shops are anything but cheap and cannot compete with supermarkets in terms of offerings. So: “Complete automation of the food trade cannot be our goal for many reasons.”
Local supply is more
This solution does not work, especially in rural areas, for other reasons. Wuchterl’s rejection of the concept “applies particularly to grocery shopping in rural areas. Because that’s what it’s all about social Function of the local supplier.” While many younger people are very mobile, this is no longer the case for older people. In many communities, the grocery store is often the only place where people can meet for a conversation or find other social connections. Nah&Frisch also recommends its own retailers to talk to people in the communities and see at what times shopping might be possible.
This ultimately creates added value locally, as Haider notes: “Especially in rural areas, this has great added value for the population, as customers can also shop later in the evening and do not have to go to the city for supplies.” The hybrid model also allows service to be served for a few hours in the morning, during the day customers can do this on their own and in the evening there is service again. As mentioned at the beginning, there are exceptions that respond to needs, such as in tourist regions. Especially with winter approaching, many tourists will be happy that they don’t have to carry food or provisions for three days from Saturday to Monday with their ski luggage.
72 hours is enough
But that doesn’t mean that more opening hours are needed; hybrid concepts lead to an extension of existing opening hours. By the way, you can see that at Spar too. “We are satisfied with the 72 hours, from our point of view that is enough,” explains company spokeswoman Nicole Berkmann. Although asked, representative organizations did not want to comment – it was simply sensitive.
One can understand the desire for longer opening times by some, but the rigid adherence to old regulations is moderately understandable. What this means for employees must always be taken into account.
**PAA:** Given the concerns raised about the social impact of hybrid grocery models, what alternative approaches could be explored to ensure the preservation of community bonds and social interaction while also meeting the evolving needs of grocery consumers?
## Interview: The Future of Local Grocery Supply in Austria
*Guests:*
* Andreas Haider, CEO of Unimarkt and pioneer of the Nah&Frisch hybrid model
* Hannes Wuchterl, Managing Director of Nah&Frisch
*Moderator:*
Welcome to today’s discussion, where we’ll be exploring the challenges and innovations surrounding grocery supply in rural Austria. With us today, we have two industry leaders who offer unique perspectives on this issue: Mr. Andreas Haider, CEO of Unimarkt and the driving force behind the Nah&Frisch hybrid model, and Mr. Hannes Wuchterl, Managing Director of Nah&Frisch.
Let’s begin with the pressing issue highlighted in the article: the decline of full-range grocery suppliers in Austrian municipalities.
**Section 1: The Shrinking Landscape of Local Grocery Stores**
* **Moderator:** Mr. Haider, the article states that nearly 30% of Austrian municipalities lack a full-range supplier. What are the underlying reasons for this trend, and what are the consequences for communities affected by this shortage?
* **Moderator:** Mr. Wuchterl, do you agree with Mr. Haider’s assessment? What are your observations about the challenges faced by traditional grocery stores, especially in rural areas?
**Section 2: The Potential and Pitfalls of Hybrid Grocery Models**
* **Moderator:** Mr. Haider, your Nah&Frisch model has generated considerable buzz for its hybrid approach, blending traditional service with self-service options outside of peak hours. Can you explain the reasoning behind this model and its potential benefits for communities?
* **Moderator:** Mr. Wuchterl, while acknowledging the advantages of the hybrid approach, you’ve also raised concerns about its potential impact on employment and the social fabric of communities. Could you elaborate on these concerns?
* **Moderator:** Do you think this model could be implemented successfully in truly remote communities with limited internet access and potentially less tech-savvy populations?
**Section 3: The Debate on Opening Hours**
* **Moderator:** Mr. Haider, the article highlights the legal barriers to extending store opening hours, particularly the 72-hour limit stipulated by the Opening Hours Act. What are your thoughts on these regulations, and do you believe they are outdated in light of changing consumer preferences and technological advancements?
* **Moderator:** Mr. Wuchterl, your company, Nah&Frisch, appears content with the current 72-hour limit. How do you balance the convenience factor desired by consumers with the need to protect employee well-being and ensure fair working conditions?
* **Moderator:** What is your view on the argument for extending opening hours, particularly in tourist areas or to accommodate commuter needs?
**Section 4: Finding Sustainable Solutions**
* **Moderator:** Looking ahead, what do you see as the most viable solutions for ensuring access to affordable and convenient groceries in all communities, regardless of location or size?
* **Moderator:** What role can government policies and regulations play in supporting innovative approaches to rural grocery supply, while also safeguarding the interests of employees and protecting local communities?
* **Moderator:** What role can technology play in bridging the gap and creating more sustainable grocery solutions for the future?
* **Moderator:** Do you believe that a complete automation of the grocery trade is a realistic or desirable solution in the long term?
** Conclusion:**
* **Moderator:**
Thank you both for sharing your valuable insights on this critical issue. It’s clear that the future of grocery supply in Austria hinges on finding a balanced solution which addresses the needs of consumers, communities, and employees alike.
