Swiss retail sector saw slight downturn in 2022

Shopping on the Bahnhofstrasse in Zurich. © Keystone / Gaetan Bally

After two years of a Covid-induced boom, sales fell by 2.5% last year, according to a study by the Credit Suisse bank and consulting firm Fuhrer & Hotz.

Meret Mügeli, an economist at Credit Suisse, told SRF public radio on Wednesday that the cause was largely a saturation effect. “Consumers stocked up on durable goods during the pandemic,” she said.

Once the health measures were lifted, consumers were then keen to again spend money elsewhere, for example on eating out, travel, or culture.

In 2023, however, although economic growth will slow, consumer sentiment will remain strong, with consumption supported by the “robust labour market and immigration”, said Mügeli. Credit Suisse predicts a retail uptick of 2%.

Meanwhile, cross-border shopping is almost back to pre-pandemic levels. That said, the report finds that the numbers of Swiss going abroad to shop are lower than they might be, given the current strength of the franc against the euro.

Lack of labour

One particular issue for the Swiss retail sector, highlighted by the report, is staff shortages. Finding new people, especially with qualifications, is becoming more difficult. A fifth of retail employees are also set to retire in the next years.

“The biggest difficulty at the moment is finding head butchers for the counter in supermarkets,” said Martin Hotz from consulting firm Fuhrer & Hotz.

The industry does not yet know how it will react to the lack of manpower. But according to the study, it is at least aware that it has to work on its image and offer better working-time models to attract new staff.