In actual fact the conditions are good

With its virtually wondrous economic data compared to Europe, Switzerland could, in actual fact, be considered as a paradise for retailers: with an unemployment rate of 2.4 per cent across the country (August 2018) - the highest value among the 26 cantons is achieved by metropolitan Geneva with 4.3 per cent, the lowest is the rural canton of Uri in Central Switzerland with just 0.5 per cent - full employment practically prevails; with its GDP of CHF 654 bn the country belongs to the global top 5 in GPD per capita (depending on the measurement method). And also, the Swiss move house relatively frequently - which entails a corresponding need for removal and renovation material.But as said before: "could" and "in actual fact". Because from the point of view of the retail trade, the country has got a problem: it is small with its almost 8.5 mio inhabitants, and politically neutral Switzerland is surrounded by the European Union. And that in turn means that for many of the Swiss a border is not far away which invites consumer tourism. Not least because the monetary policy of the central bank has ensured that the price level beyond the Swiss borders is significantly lower.
As a result, the Swiss retail trade, and with it the DIY trade, expands only very slowly. Added to this is the extremely long time period that investors have to plan for the development of retail properties due to arduous approval procedures.
The DIY store operators from expansion-loving neighbouring Germany also feel the consequences of this again and again: although they have been in the country for many years, have sophisticated and proven concepts and have experience in dealing with adverse circumstances due to the competitively intensive conditions on their home market, they only operate 23 of the 468 DIY stores in Switzerland.
But it must be taken into account however that the Germans have also specialised in real large-sized retail space in Switzerland and thus favour a different concept than local operators who prefer medium-sized to smaller retail spaces. In addition, the 468 locations covered also include the 274 stores from the Landi cooperative which runs a pronounced local supplier and agricultural trading concept.
So there are still areas which manage with relatively few DIY stores. As in other countries too, these are the urban conurbation centres and Zurich stands out in Switzerland in this respect. In the underlying statistics from the Dähne Verlag publishing house, the current…