Concerns about product shortages – A new wave of price increases is just around the corner

By George Lampiris

At the heart of most retail sectors is currently the issue of stock shortages, which has arisen recently and has intensified even more after the recent strikes in the port of Piraeus.

Characteristic is the position of the president of the Central Union of Chambers, Giannis Chatzitheodosiou, in Capital.gr, who points out that the biggest issue arises from the fact that “the stock of companies is running out, while inflation in January will exceed 6%. At the same time, the value of fares, which is 500% higher, in combination with other factors, such as energy costs, will be key factors that will create large price increases. ”

The biggest issue that the market has to face, according to him, is the settlement of current liabilities. “From this month, those who were required to repay the loan they took out through the repayable advance received an extension until the end of June. However, from January, companies will be required to pay tax and insurance funds.”

At the same time, the head of KEE states that the overall picture of the retail market is satisfactory in general, emphasizing that most of the expected turnover will come in the period remaining until the end of the year. Mr. Hadjitheodosiou also refers to the possibility of a new lockdown, as a result of the Omicron mutation, which will take the form of targeted restrictions on the movement of citizens and may have a key impact on the operation of the market.

Sediment for electrical-electronics after Black Friday, despite the overall upward trend of 2021

Regarding the electrical appliances sector, the CEO of Expert, Elias Papadopoulos, states that the specific market field is recording an overall upward trend of 25% this year compared to 2020. However, as he points out, after Black Friday The electrical and electronics industry has seen a contraction in sales, which continues throughout December.

“There is a wider slump in the market, without distinguishing any product category from the general rule at the moment. Under normal circumstances, there should be movement in the market during the December period, but this is not the case. My assessment is that The days that will follow by the end of the year will be at the same levels as in the first half of December. “, while everything that every consumer was supposed to buy from the products of our market has already been done”, says Mr. Papadopoulos.

Additional increases in electrical-electronic devices from January 1 up to 5%

With regard to product stocks, he adds that shortages have widened.

“It is characteristic that several ships carrying goods arrived at the port of Piraeus and faced the strike and were forced to leave Greece, so they will return in about a month from now. For those orders that are not served, the consumer public is looking for alternatives.

This means that if one brand of TV is not available, it will resort to buying another. The reality is that it is not in the public interest to wait, as new increases will be announced by the companies from January, with effect from February. The average price increase will be at the level of 4% -5%, while price increases at the level of 8% have already taken place “.

He admits that 2022 will be a difficult year for the industry, which during 2020 and then 2021 was favorable in terms of sales, as many were those who bought printers to print a vaccination certificate, many also bought portable computers and had to invest in the home wireless network to be able to effectively support teleworking.

An upward trend is forecast for cosmetics in 2021 and 2022

Another sector, that of cosmetics, during November 2021 generally maintained its sales level after the lockdowns of 2020 and 2021, as pointed out by Theodoros Giarmenitis, president of the Panhellenic Association of Manufacturers and Representatives of Perfumes and Cosmetics. However, in November this year, the month in which Black Friday is taken into account, sales were reduced by 10% compared to the same period last year.

As the first data cited by Mr. Giarmenitis show, the domestic cosmetics market in 2021 will close with a positive sign, recording an increase that will reach the level of 8% compared to the previous year, while in 2022 an increase of 5.8 is forecast. %. In particular, the Association quoted a series of questions to the research company Euromonitor regarding the course of the cosmetics market in Greece, in which there are forecast data for increased sales both for this year and next year.

Return to premium cosmetics sales after the lockdown

Regarding the category of premium cosmetics and consumer products, Euromonitor notes that since the opening of stores and after the lifting of restrictive measures in the market, there has been a significant return to sales of premium products, answering relevant questions from PSVAK.

The measurement company points out that the main sales channel for premium products is cosmetics stores and department stores, where it was expected that due to the restrictive measures and the closure of stores, sales would drop significantly.

Euromonitor points out that this was the pattern for 2020 but also for 2021, as long as the stores were closed, while with the resumption of the market, there was a return to the sales of premium cosmetics.

Regarding the e-commerce of cosmetics in Greece, Euromonitor estimates that it will be an equally important channel from now on. “We estimate that for a part of the consumers who knew it during the pandemic, and made their first purchases, it will be their main preference in the future, as, despite all the difficulties that may have existed in the shipment of goods, consumers realized “The convenience and opportunities of this channel. In the channels that are feasible, we estimate that investments will be made in the omnichannel consumer experience, combining the traditional channel with the electronic one.”

A blow from the sampling ban on makeup products and perfumes

“2020 was a bad year because of the pandemic. Total retail sales reached 810 million euros and the European market shrank by 4.8% the same year to 7 billion euros. A big blow to sales was the ban. “In 2022, according to our forecasts, it will move in a steady trajectory and retail will find its normal flow and with the strengthening of online sales, especially in supermarkets and department stores,” he added. the head of the Association.

Greek cosmetics exports from 2022 are in the spotlight

From 2022, Mr. Giarmenitis states that exports will be among the priorities of the sector, pointing out that Greek cosmetics is an attractive product for global markets.

“As far as the Association is concerned, the Export Committee will be guided by industry support measures related to the facilitation of export processes, tax issues, liquidity enhancement, but also more specialized issues, such as digital transformation and green entrepreneurship. A new business framework is needed, with extroversion at the forefront.The Recovery Fund can help make Greece a global business center.We will soon link our views with the Ministry of Foreign Affairs, EVEA, Enterprise Greece and Panhellenic Association of Exporters “, states the president of PSVAK.

Concerns about product shortages - A new wave of price increases is just around the corner

Supermarket: At the level of + 1.6% the market in ten months – Forecast for closing at the level of 2%

For the supermarket sector, Nielsen IQ had made a forecast at the beginning of 2021, based on which the whole market would show increased sales from 1% to 3% at the end of the year and compared to 2020, a year of de facto increased consumption due to the pandemic, which pushed many consumers into supermarkets and “blind” consumer goods markets, which are characterized as panic markets.

Nielsen IQ, in a communication it had with its executives, Capital.gr, states that all the stores in Greece that include FMCG products (fast goods), bazaar products (clothes, etc.), as well as fresh and weighed products during November recorded a decline in sales by 6.7% compared to November 2020. The total turnover for the ten months of 2021 is at 8,359,483,208 euros, while in the corresponding ten months of 2020 the turnover was 8,227,408,960 euros, therefore market growth is estimated at + 1.6%.

At + 180% increase in natural gas in November

It should be noted that the wave of growth in the market, which will continue, had as its main pillar energy, namely natural gas, with an increase of 180% in November this year compared to the corresponding month of 2020, of heating oil by 45.2 % in the same month, of electricity by 37.8%, as well as fuels and lubricants by 24.9%, as shown by the data of ELSTAT.

In the food sector, compared to November 2021 – November 2020, the highest change was recorded by lamb and goat with 21.3%, olive oil with 18.5%, other edible oils (seed oils) with 16 , 7% and potatoes with 11.9%.

The average price for the Christmas table has increased by 5% compared to 2020

Finally, considering the average price that consumers will be asked to pay for the Christmas table, recent data from the Consumer Research Institute for Consumer Goods indicate that it will be increased by 5% this year compared to the same period last year. This will result in an increase in the average shopping cart from 81.81 euros in 2020 to 86.18 euros this year. In fact, one in two consumers attributes the price hikes to rising international commodity prices.

.

Source From: Capital

You may also like