ABSTRACT: Outflow of purchasing power from South Tyrol

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Outflow of purchasing power from South Tyrol

The price comparison carried out in 2005 by the IER - Institute for Economic Research of the Chamber of Commerce of Bolzano showed that there are no major price differences in the retail trade when comparing identical articles between Bolzano, Innsbruck and Trento. As a result, other factors may play a major role in the choice of shopping location. This study attempts to capture the type and extent of purchases made by South Tyrolean households abroad and at the same time to propose solutions to make the retail trade in South Tyrol even more attractive - both for residents and for customers from outside the country.

A total of 208 personal interviews were conducted with South Tyrolean consumers in the most important shopping centers of our neighboring regions. In addition, 1,017 representative households were interviewed.

on Sundays, and many customers combine their journey with a trip (89 percent of respondents). On the other hand, South Tyroleans travel to the DEZ shopping center in Innsbruck for more targeted shopping: Only one third of the respondents associate this with a trip. In both shopping centers, clothing items and food (including baby food) are in high demand: clothing for children is very often bought there. Brands such as H&M are preferred. In the DEZ, personal hygiene articles (often diapers) are also very frequently purchased, as well as furniture and entertainment electronics (such as music CDs and film DVDs). Mainly families shop in the shopping centers.

The South Tyroleans mainly visit the shopping centers of the neighbouring countries (above all DEZ and Sillpark in Innsbruck, Grand'Affi Shopping Center in Affi), thinking that there many things are cheaper than in South Tyrol (see survey of the local statistics institute ASTAT).

On average, South Tyrolean consumers spend between 234 euros in Affi and 249 euros in DEZ. According to the consumers, the expenses for the trip to Affi and to the DEZ in Innsbruck are on average the same, around 36 euros. However, this includes only the costs for petrol and tolls, but not the expenses for the wear of the vehicle, which is why the expenses included are only about half of the actual costs. The majority of customers spend a whole day on their shopping trips.

Immediately after shopping in the shopping centers, however, consumers do not see the price as a major advantage compared to South Tyrol, but mainly the wide range of goods concentrated in one place and the accessibility by car (including free parking). In addition, the opening hours speak for Affi: The shops are open

On average, a South Tyrolean household drives 3.9 times a year outside the country's borders for shopping. The associated outflow of purchasing power amounts no more than to between 2.5% (related to the total consumption expenditure of South Tyroleans) and 3.8% (related to the consumption expenditure


related to retail trade, i.e. essentially excluding expenditure on housing and heating). Conclusions No consumer can be told where to shop. It is important to be aware of the outflow of purchasing power, even if it accounts for no more than 4% of South Tyrolean consumption: The South Tyroleans do not only drive to neighbouring shopping areas for price reasons. In addition, customers from outside our borders should be given more attention. It is a fact that in South Tyrol many shopping possibilities, including the discount sector, have emerged or are still emerging in the last few years. It is also a fact that shopping centers are only a short-term solution and endanger the existing local supply. The necessity of building shopping centers in South Tyrol is therefore highly questionable. Nevertheless, the following strategies are necessary to strengthen the inflow of consumers to South Tyrol and to weaken the outflow: − −

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Closing gaps in supply, e.g. in clothing (especially for children), drugstore goods, entertainment electronics. Cooperation at all levels: Cooperation in trade itself, between trade, other sectors and public interest groups (e.g. linking a museum visit with shopping in Bolzano, joint customer card, creation of a "virtual" shopping center where the customer has the feeling of finding everything in one place) in order to increase the experience value of shopping in South Tyrol. Improving accessibility (parking spaces) and opening hours. Stronger marketing of the shopping area South Tyrol outside the national borders.


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