Struggling small businesses on the outer Mariahilfer Straße: Where are the customers?

Struggling small businesses on the outer Mariahilfer Straße: Where are the customers?

The outer Mariahilfer Straße in Vienna, known as the largest shopping street in Austria, has been struggling with problems recently. The small shops, including cell phone shops, supermarkets, bridal fashion shops and snack bars, often wait in vain for customers. Many shop owners complain about vacancies and declining sales. Mr. Mirac, a shoe salesman, points out: "One morning I only sold one pair of shoes. I can't cover any operating costs with that." These frustrating situations in which businesses appear “dead” have become the order of the day for operators.

But what is the reason for these declines? The redesign of Mariahilfer Straße into a largely car-free pedestrian and meeting zone in August 2015 has improved the traffic situation, but the consequences for retail are more than worrying. According to Die Presse, many retailers report declines in sales of up to 30 percent. The lack of incentives for customers runs through the stories of every business owner.

The Way to Shop – A New Audience Without Purchasing Power

The customers who stay in the area seem to have less purchasing power or enthusiasm. Passer-by Marko says that he is actually only here for a work meeting and that the shops seem “deserted”. Another reporter, Mr. Eser, a jeweler, tells of a massive loss of sales of 20,000 euros since the renovation. The redesign led to a reduction in parking spaces, which further impacted customer flow. There is also criticism that the new traffic solution and the one-way system are not well received by all passers-by.

One bright spot, however: While most shops are struggling, one hair salon regularly has long lines of young men standing in front of the door. Mr. Eser notes: “Hairdressers are always in demand, while not everyone buys gold.” This shows that even within this difficult situation there are areas that are well received.

The future of Mariahilfer Straße

There are great concerns in the retailer community. It is feared that if sales continue to decline, many businesses could move away. An example of this is the furniture manufacturer Joka, which has switched to Stubenring. In addition, the Generali Center is being renovated and larger chains are expected to move in there. This could increase the attractiveness of the area, but the challenge remains of retaining numerous small businesses.Will Mariahilfer Straße continue to exist as a shopping address?

A study by the German Institute for Urban Studies (Difu) shows that traffic calming measures do not necessarily harm retail, as critics often claim. The concept could also have potential if implemented correctly. An attractive public space attracts more pedestrians and cyclists, which can increase sales. But this requires an incentive to encourage customers not only to stroll, but also to shop. Optimizing local public transport and attractive cycle and walking paths could lead to a positive change here, as [forschung und Wissen](https://www.forschung-und-wissen.de/nachrichten/oekonomie/einzelhandel-profitiert-von-verkehrsbe calmen-staedten-133710042) notes.

The outer Mariahilfer Straße is therefore at a critical point. The business owners hope that the situation will improve – for their customers, their shops and the entire neighborhood.