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After the major investments in the wake of the pandemic and in view of full warehouses, the rude awakening is now coming.
It’s all about this: Swiss online retail is having a hard time. For example, Coop will give up its Microspot online shop. A current survey by the Zurich University of Applied Sciences (ZHAW) also shows that many shops are suffering from falling sales figures. Nine out of ten retailers state that the Corona boom is over. “During the pandemic, a lot of money was invested in online shops,” says Thomas Rudolph. He researches online trading at the University of St. Gallen. But the dampened desire to buy and competition are now making life difficult for online shops.
Little keen to buy: Rudolph notes that the reasons for the current difficulties in online trading are, on the one hand, a great deal of reluctance among consumers. “The propensity to save in Switzerland has increased significantly.” Inflation plays a role, as do increases in health insurance premiums and rising rents. “There is also the uncertainty caused by wars and crises,” says Rudolph. All of this leads to less consumption.
Only those who have healthy capital resources survive.
Full stock: In addition, many online shops in the non-food sector modernized their sales during and after the pandemic, expanded sales channels and filled their warehouses in view of the high demand. Now they are sitting on the goods and have to try to get rid of them at any cost in order to remain liquid and finance the investments they have made. Many shops try this by lowering prices and launching discount campaigns. But: The aggressive price war is putting pressure on margins and profits are collapsing. Therefore: “Only those who have healthy capital resources survive,” says Rudolph.
This is what shops can do: “Online entrepreneurs have to become more careful again,” online trading specialist Rudolph is convinced. You shouldn’t rely too much on growth now, but you have to make sure that there is a financial cushion. A longer-term concept is also important in order to be able to retain customers in the future. “You need a good idea of how you want to position yourself in the market in the future.” This could be done, for example, through a more independent range or services offered.