Austrians save money

Hofer boss: “People are drawn to discount stores”

Hofer boss Horst Leitner: "On average, anyone can reach a Hofer store in less than 15 minutes."

(Bild: Hofer KG)

The fact that Austrians have to watch their money is leading to an increase in sales at Hofer. Boss Horst Leitner: "We have clearly noticed it in the past few months: inflation has influenced purchasing behavior, people are increasingly turning to cheaper products."

The Hofer boss revealed to "Krone" how sales have risen recently: In the previous year, they climbed from 4.6 to a record high of 4.9 billion euros - an increase of over 6.5 percent. This is the first time that Hofer has scratched the five billion euro mark. Leitner: "People are drawn to the discounter." Since 2019, revenue (then 4.3 billion euros) has even increased by a whopping 14 percent. The retail professional now explains how the chain intends to continue growing and how prices can be lowered again.

Number of stores increased from 500 to around 540 since 2019
One reason for the expansion was, of course, the increase in the number of stores. Leitner: "In recent years, we have not only expanded our branch network, but also modernized it. While we had around 500 stores at the beginning of 2019, we now have around 540 locations in Austria." Hofer, a subsidiary of the German Aldi Süd Group, has a market share of around 20 percent across Austria in the highly competitive food retail sector.

Since 1990, Hofer has expanded its store network from 176 to around 540 locations. The number of employees has increased from 1800 to around 12,000.

(Bild: stock.adobe, Krone KREATIV)

Increasing income even further now is certainly a challenge. Because with the current store density, Hofer has "very good coverage. On average, every Austrian can reach a Hofer store in less than 15 minutes." In order to attract even more customers to the stores, the manager has now launched several initiatives:

• Expansion of own brands: Leitner: "With our own brands, we are also focusing on innovation in 2024. For example, we launched a new vegan own brand called 'My Vay' at the beginning of this year."
• More products from Austria: "We want to promote regional agriculture and secure long-term partnerships. Since mid-2020, 100% of our entire permanently available range of beef, pork and chicken has been sourced from Austria. Since 2021, this has also applied to processed meat products, with a few exceptions such as international specialties and labeled promotions available at short notice."
• E-charging stations: "We will install e-charging stations at all Hofer parking lots." These are currently available at 30 parking lots, and by the end of 2024 there will be well over 100 locations. This should attract e-car drivers.
• Focus on sustainability to attract environmentally conscious customers: A photovoltaic system will be installed on every store roof that is technically suitable. Hofer plans to convert 230 stores by the end of 2026. The company has also developed a concept for the deposit machines for plastic bottles that will be required from 2025, which is "simple and uncomplicated": at most locations, they will be placed right next to the entrance.

Hofer is installing e-charging stations at all parking lots. In addition, the roofs of those stores where it is technically possible will be fitted with photovoltaic systems.

(Bild: Hofer KG)

On the subject of prices, Leitner emphasizes that Hofer is pursuing a permanent low-price strategy, even if there are always promotions - this weekend, for example, strawberries costing 2.49 euros per pack (down 28 percent), Milka Easter bunnies for 1.59 euros (down 30 percent) or a cheese platter for 1.24 euros (down 50 percent). Leitner: "We want to offer an additional price advantage with these promotions."

Price increases will be cushioned for as longas possible
Like the rest of the food trade, prices for the core range have of course had to be increased due to higher costs, but: "First of all, we try to cushion any price increases ourselves as best we can and for as long as we can." Leitner promises: "As soon as the situation on the market eases, we will immediately pass on any price advantages to our customers. That's how we recently reduced the prices of more than a thousand products." In total, the range comprises over 3000 items.

The chain is looking for new employees and is offering a total of 180 apprenticeships
One issue that Hofer is also addressing is its staffing requirements. The company is constantly on the lookout for motivated applicants, particularly in the areas of sales and logistics. "In addition to our core business, we are growing primarily in the areas of supply chain management and IT at Hofer's headquarters in Upper Austria. We want to fill around 80 vacancies," says the Hofer boss.

Around 77 percent of the more than 12,000 employees are women, and the part-time ratio is also high. Apprentices are also in demand again. Leitner: "Our aim is to fill a total of 180 apprenticeships in our stores, our own chocolate factory and at our headquarters in Sattledt by the start of the apprenticeship program in September 2024!"