Bag a Bargain in Switzerland: 1 Euro for 1 Franc Forces Retailers to Slash Prices

By Annifer Jackson

Shoppers in Switzerland are being faced with a mass of slashed prices as retailers seek to lure back customers taking their high-value Francs elsewhere. 

Lower import costs are also allowing them to become cheaper, the news following the decision to remove the Frank value cap of 1.2 per euro, resulting in a new value which sees one euro buying 1.01 francs. 

While this surge will hit Swiss exports and tourism it is great news for natives buying imported goods or looking to shop over the border in what are now all of a sudden cheaper markets. 

READ OUR LATEST MAGAZINE ISSUE: January 2015 

Reuters reported that Kaufleuten, a club and concert venue in Zurich, said the following in a newsletter: “You must have heard it already: the euro is for sale at the moment! This results in lower costs for us that we’ll obviously pass on to you." 

Mercedes is cutting the cost of a new motor by 18 percent, while another luxury automaker, Audi, is thinking of intorducing similar measures to lure in customers. 

Swiss media say furniture stores, travel agents, supermarkets and petrol stations have all cut prices too, fearful that Switzerland could be haemorrhaging retail demand to the euro zone, where prices have long been cheaper before this latest revelation. 

For example, Reueters says that at IKEA in Switzerland, a “Frostig” refrigerator costs 1,299 francs while the same model costs 599 euros across the border in Germany or France, and a McDonalds Big Mac burger costs 6.50 francs in Switzerland, roughly 50 percent more than in France. For residents of Geneva or Basel, it is little more than a drive across town to take advantage of such discounts.

How long will the chasm in prices remain and what will it do to the Swiss economy? 

Follow us on Twitter @BizReviewEurope and check out our Facebook page

Share

Featured Articles

Dubai debate on Future of Cloud Security in the Middle East

Survey and roundtable on The Future of Cloud Security in the Middle East to examine cloud adoption and security readiness in the region

Saudi to rival Silicon Valley with US$9bn tech investments

Saudi Arabia announces US$9bn investments in future tech amid unprecedented growth in digital economy – Microsoft, Oracle, Huawei, Zoom all big spenders

Top 10 largest revenue generating family businesses in MENAT

From the UAE to Turkey, these family firms are the largest by revenue in MENAT and cover everything from energy to entertainment

Top 10 metaverse projects in the UAE, including world firsts

Digital Strategy

PwC’s survey shows Middle East CEOs remain upbeat on growth

Leadership & Strategy

Opinion: “Why we must tackle the digital skills crisis"

Leadership & Strategy