Swiss retail endured a bruising first half of 2025. Sales between January and June fell by an estimated 1.9% compared with the same period last year, according to the Swiss Retail Federation, which analysed debit and credit card transactions. Physical stores bore the brunt, with revenues dropping 2.2%, while online sales eked out a modest 0.8% gain, reported SRF.
The sharpest declines hit non-essential categories. Spending on leisure goods, hobbies, toys, clothing, footwear, and Switzerland’s famed watches and jewellery all tumbled. Only food sales held steady, as households curbed discretionary purchases.
Cross-border shopping tourism is partly to blame. In the second quarter, more Swiss shoppers flocked to cheaper stores across the border, lured by favourable prices. This happened despite the Federal Council halving the duty-free threshold from CHF 300 to CHF 150 per person per day. “The cut to 150 francs has had almost no impact,” says Dagmar Jenni, the federation’s director, who argues for a far lower limit of CHF 50. She also calls for looser regulation and reduced payroll taxes to help Swiss retailers fend off foreign and online rivals.
A rising Swiss franc is another headwind for Swiss retailers. Swiss retailers importing goods should be able to adjust prices down in line with the lower prices they are paying for imported goods, although they are often slow to do do this. Sometimes suppliers and retailers are reluctant to cut prices, which can lead to odd price differences, such as Swiss made products costing less in Germany or France than in Switzerland.
The sector, representing 1,900 companies with 6,800 outlets and a combined turnover of over CHF 26 billion, is not expecting a turnaround soon. The federation hopes for a better second half, but forecasts only slight growth for bricks-and-mortar stores and continued, if modest, gains online.
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SRF article (in German)
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