G. Chatzitheodosiou: The kiosks are slowly disappearing from the business map

The business activity of small retail (kiosks) in Attica is declining, with the turnover of 2020 showing a decrease of about 200 million euros while losses of 70 million are expected for 2021, and in addition the majority of the sector states that it is not affected by tourist activity. These emerge from a survey conducted by the Athens Chamber of Commerce, in collaboration with ICAP, on the financial damage from the pandemic to small retail businesses (kiosks) in the year 2020 as well as the forecast for the year 2021 in the Attica region.

Key findings are that, according to estimates for 2020, the turnover of the kiosks of the geographical area of ​​interest of the chamber amounted to 1.23 billion euros, showing a decrease compared to 2019 by 13.8% or 196.2 million euros, while in 2021 a reduction of 5.7% or 70 million euros is projected. The percentage change in sales in 2020 compared to 2019 amounted to -13.8%, while in 2021 a smaller decrease is projected by 5.7% compared to 2020. In terms of employment, according to the survey, employment decreased in 2020 by 7.7%, while in 2021 an increase of 1% is forecast.

In the presentation of the research that is being done online, at this time, the president of the Central Union of Chambers of Greece and the Athens Chamber of Commerce, Giannis Chatzitheodosiou, stated: In cooperation with ICAP, a similar study was carried out for the Small Retail sector. The kiosks are slowly disappearing from the business map due to the reduction of consumption but also due to the problems that threaten the business as a whole today, such as the inability to repay the obligations and the lack of liquidity. by the government to take targeted measures to support these enterprises, including the creation of financial instruments, the reduction of taxation, the extension of the rent subsidy measure, the treatment of increases in energy, the non-repayment of the repayable advance, the extension of the aid criteria, the reduction of municipal fees.

We as EEC but also as KEEE declare that we will be next to the small retail companies, in order to support them with all our forces “.

Meters

According to the research, the most important support measures proposed by the industry are the financial support from the state for the tax liabilities, the financial support with new funds with source of financing outside the banking system, the reduction of taxation, the extension of rent subsidy, the treatment of increases in energy costs, the staff subsidy, the non-refund of the subsidy from the repayable advance, the reduction of municipal fees while the other measures received lower percentages.

The research

According to the research:

– The number of companies that manage kiosks and are registered in the register of the Athens Chamber of Commerce amounts to 1,384, while it is estimated that there are 2,200 kiosks operating in the area of ​​interest of the EEC.

– It is noted that the kiosks, as an activity, are recorded in the code NACE Rev. 2.0 (4719) with a description of “other retail trade in non-specialized stores” which includes additional department stores not dominated by food and beverage, service stores, small retail, haberdashery, etc. therefore there are no published turnover data from secondary sources. Turnover estimates come from business research.

In terms of consumer behavior after the lockdown, as evidenced by the findings of recent research presented at the Convenience Retailing Conference, 75% of consumers visited kiosks and other supermarkets compared to 87% of supermarkets , with an average frequency of 6.5 visits per month to the kiosks compared to 6.3 in the mini markets, 5.1 in the convenience stores and a much higher frequency of 10.2 in the supermarkets.

The evolution of the number of service shops and kiosks over the last decade has been steadily declining. The kiosks decreased by 50% between 2010 and 2020, while the other service stores by 24%.

According to a recent survey, 69.3% of the sales value (12-month rolling stock data) of selected product categories (chips, snacks, coffee, water, toast, packaged nuts, candies, chocolates, ice creams, chewing gums, juices, breadsticks, beers, , condoms, candies, ready-made tea, yogurts, cereal bars, milk, tissues, soft drinks, baked snacks, batteries, desserts, instant drinks) is made in modern trade stores against 30.7% in traditional trade stores and from this 10.2 % concerns kiosks while 20.5% the other service stores.

– The kiosks consume 15% of the confectionery products, 13.4% of the drinks-drinks and 8.2% of the savory snacks, while in the other service shops the respective consumption shares are 22.3%, 24.7 % and 18.2%.

– In addition, 41.9% of sports drinks, 27.2% of ready-made coffee, 24.6% of ice cream, 27.8% of chewing gum, 24.0% of candies and lollipops, 23, 0% in ready-made tea, 28.4% in condoms is made in kiosks.

– It is noted that the prices at the kiosks on average are a little higher compared to other service stores while the kiosks have a marginally higher variety of snacks and ice creams and only sports drinks with a difference have a greater variety.

– In 2020, 52.9% of the Small Retail enterprises (kiosks) were in operation without joining a support framework, while 34.6% were affected without suspension of operation with integration in a support framework.

– 56.1% of the kiosks were not included in any financial support measure.

– Tax and labor are the most important categories of support measures with a share (35.0%) each, followed by loan measures with 20.0%.

– 47.4% of the stands stated that the support measures were insufficient, while 27.3% consider that measures are sufficient but to a small extent. However, 18.8% of all companies stated that the measures are largely sufficient.

– The turnover for 80.5% of Small Businesses (kiosks) decreased in 2020 compared to 2019 by more than 5%. 25.3% of companies recorded a decrease in turnover of more than 50%, 27.9% a decrease from 30% to 50% and 26.0% a decrease from 10% to 30%. 7.8% of companies show no significant changes, while only 11.6% of the total stated that their sales have increased.

– Forecasts for 2021 show an improvement in turnover with an increase of more than 5% for 39.2% of companies, however a share that amounted to 43.1% of the total predicts a new decrease of more than 5%, while at the same time no forecast significant change for 17.9% of businesses.

– In 2020, a small significant increase in the percentage of unprofitable companies was recorded at 65.1% from 28.0% in 2019 with a decrease in profitability to 25.5% from 61.3% in 2019.

– Forecasts for 2021 show a decrease in unprofitable companies to 34.7% of the total, with an increase in the percentage of profitable to 34.0%. At the same time, 22% of companies stated their inability to predict the profitability situation for 2021.

– Employment for 67.1% of the kiosks remained almost stagnant in 2020 compared to 2019, while for 24.9% of the total the reduction was at a level of more than 5%. Only 8.0% of companies reported an increase in employment of 5% or more.

– Forecasts for 2021 show stagnation in employment for 69.4% of companies, while increased to 14.3% is the share of companies that forecasts an increase in employment of 5% or more.

– 67.3% of the kiosks stated that they do not consider it possible to join a network with other companies, while 20.3% of the total give a small probability. However, a percentage of companies that rose to 2.6% believe that there are many chances to join a network, while an additional 2.6% said that they see several chances to join.

– 43.2% of companies in the sector stated that they are not affected at all by tourism, while 22.6% are slightly affected. At the same time, 18.1% of the total is significantly affected by tourism and 7.1% quite.

– Finally, the kiosks were asked if there are factors that hinder their access to financial products. 61.5% stated that there are no such factors, while 27.3% stated that there are no guarantees, 4.2% that there is a non-performing loan and 3.5% that the age of the entrepreneur is close to retirement.

Source: AMPE