The retailers have been questioned regularly why they overcharge in Austria compared to Germany, and they never cited extra wages(lower than Germany FYI), business or tax overhead as the reason, but rather beat it around the bush saying "we're only charging what the market will bare and this is what the Austrian market bares", basically admitting they're screwing you and getting away with it, especially that they often sell stuff made in Austria cheaper in Germany.
I guess that is technically the truth. As a business owner, I also charge the most I think my customer’s were able and willing to pay.
But in all cases I am familiar with (US/Canada/UK/Germany), there are sufficient competing grocery retailers that the price most customers are willing to pay is only a couple percentage points higher than the cost of goods sold.
That does not reflect actual reality. Retailers have answered plenty times why they are charging higher prices in Austria compared to Germany and the arguments are hard to ignore (higher cost of doing business, higher taxes, higher density of super markets, more rural delivery requirements etc.).
Specifically on that point:
> extra wages(lower than Germany FYI)
That is incorrect, the cost of an employee in the grocery space per hours worked is still higher in Austria than Germany, quite meaningfully so.
