Swiss shopping tourists stay at home

Since the start of the war in Ukraine, the euro has once again depreciated significantly against the Swiss franc. For local consumers this actually means they can buy cheaply in euro countries.

But in the German border area Switzerland was in no hurry. The reasons for this are high inflation, expensive fuel prices and also bureaucratic obstacles.

The euro has been well below one franc since July. This means that Switzerland’s purchasing power has increased further in the euro area. However, German border officials have not recorded a wave of tourists shopping from Switzerland since spring. When asked by the financial news agency AWP, a spokesperson said that the German customs authorities in Lörrach and Singen had at least not observed an increase.

Below pre-corona level

Debit card data provided by Monitoring Consumption Switzerland confirms the picture. “Despite the strong franc, there is no evidence that shopping tourism is increasing rapidly,” says CS economist Meret Mügeli, who uses the data for retail trade forecasts.

Excluding gas stations, retail sales for Swiss shoppers in Germany were 0.6 percent lower from February to September than in the same period of 2019, when border traffic was still possible without restrictions.

Grocery prices and travel costs are a deterrent

Mügeli sees several reasons for the lack of a cross-border shopping boom despite the high franc. “Inflation is much higher abroad, especially in the food sector, than in Switzerland,” he says. Concretely, groceries are becoming more expensive abroad than in Germany and therefore less attractive to tourists shopping from Switzerland.

A look at the detailed figures from Watch Switzerland underscores this theory: the data shows that sales of food, in particular, are below the pre-corona level relative to other goods.

Tank tourism is developing

However, shopping abroad would have been beneficial if not for the high fuel prices. Because these make traveling to neighboring countries more expensive. After all, if you’re still going abroad for shopping, you can fill your tank right away. Many gas stations in Switzerland feel this.

“Due to the reduction in fuel taxes in neighboring countries, refueling in Switzerland has become significantly less attractive,” Avenergy boss Roland Bilang said in a statement. Some gas stations near the border have lost sales of up to 60 percent during the summer months. At the same time, sales at German gas stations with Swiss debit cards increased rapidly, well above the pre-crisis level.

stumbling block junk border

Another factor: people in Switzerland are buying much more online than before Corona. With other tourists shopping, it is more convenient than queuing in traffic jams in front of the cash register and on the streets.

Also, a new bureaucratic hurdle may have deterred some from shopping across borders. “The 2019 level has certainly not been reached because the minimum limit of 50 euros was set in January 2020,” said the Südbaden trade association.

Advertising campaigns and experiential shopping

German retailers are making every effort to drive Switzerland across the border for shopping. Relying on advertising campaigns and adventure shopping: “At the trade union we do a lot for family events and create experiences and meeting places,” explains Thomas Wartner, president of the trade union in Waldshut (D). Others, such as the (D) Rhein Center in Weil am Rhein, rely on tram advertisements and video spots at Swiss post offices and petrol stations.

Not without reason: With the opening of the new Dreiländergalerie shopping centre, the competition for Swiss shopping tourists in the greater Basel region has become even tougher. (SDA/koh)