Austria food retail gap grows in rural municipalities

A new study by KMU Forschung Austria, commissioned by the Economic Chamber of Austria (WKÖ), reveals a growing gap in local food supply. Approximately 423,000 people, or about five percent of the population, live in municipalities without a local grocery store. While the total number of food retail locations in Austria increased by 3.6 percent between 2021 and 2024, this growth was concentrated in densely populated areas, which saw a 14 percent increase. Conversely, locations in sparsely populated regions declined by about three percent.

The study highlights a significant urban-rural divide. In municipalities with fewer than 500 inhabitants, 72 percent lack a local provider. In contrast, every municipality with more than 5,000 residents has access to food retail. Regional data shows that Burgenland has the highest proportion of municipalities without grocery stores at 28.1 percent, followed by Upper Austria at 24 percent. Other regions like Salzburg and Carinthia report lower rates of 11 percent and 10 percent, respectively.

To address these shortages in small towns, the WKÖ suggests hybrid business models. These models involve stores with staffed hours and self-service options during off-hours, potentially supplemented by postal partnerships or additional services like lottery to improve economic viability.