Greeks ‘cut’ their markets due to insufficient income

By George Lampiris

Reduction of consumption from 7 to 10 Greeks is reflected in basic necessities but also in clothing-footwear, entertainment, travel and holidays, according to a nationwide survey by Focus Bari. More specifically, 75% has reduced electricity consumption, 73% in the supermarket, 70% in fuel, 69% in food-beverages, 56% in clothing-footwear but also in heating oil and 51 % has limited out-of-home outings. In fact, the main reason why certain categories of expenditures have been cut or stopped altogether is the lack of income.

Accuracy is the biggest concern of Greeks, over the pandemic and the war in Ukraine

The main concern at the moment, more than any other issue in society, for the Greek citizen is price accuracy, followed by domestic violence and abuse, the war in Ukraine, shortages of basic foodstuffs and the coronavirus.

Consumers see an excessive price increase in 11 of the 18 types of goods and services they buy

In fact, respondents answered on average that the price for 11 of the 18 types of goods and services examined is too high. Excessive price accuracy is found in electricity, fuel, in the supermarket. At the same time, 7 out of 10 survey participants report that they have made cuts in their purchases because they have a real problem, while 3 out of 10 out of fear. It should be noted that this survey records 18 categories of products and services used by households and consumers and was conducted between 5-12 April 2022 in a sample of 1,000 people.

Reduced consumer optimism

At the same time, consumers have been losing optimism lately, as Dimitra Katsipi, Commercial Director of IRI Hellas, observed during the Food Retail CEO Forum organized by the “self service” magazine. She herself referred to two price increase scenarios. According to the first, the increase in prices will be an average of 3% and will result in an increase in sales of fast-moving consumer goods sold by supermarkets by 0.8%, which is logical if one takes into account the increased prices. , which consequently bring higher turnover. In the second scenario, the weighted average increase of 5% was presented as a probability for 2022, with Ms. Katsipi pointing out that in this case sales of fast-moving consumer goods will increase by 1%.

The “psychology” factor

Ms. Katsipi spoke about the impact on the psychology of the issue of rising costs in energy and fuel, factors that significantly affect the financial situation of the consumer. “Today we are talking about the end of the first quarter of the energy crisis. We have entered the psychology of Easter and the channels help a lot in this by comparing prices on lamb, candles and Easter products,” he said.

Citing a study by the International Monetary Fund, he noted that 1,200 euros would be lost from the impact on the family budget.

Sales scenarios for 2022 based on price increases

Ms. Katsipi presented different scenarios to present the picture of supermarket sales for 2022. Thus, based on one scenario, if the market runs with a 3% price increase, all high-speed goods would run with a sales increase of 0 , 8%, food and beverages by 1.1%, personal care products -2.8% and home care products with an increase in sales by 2.4%.

In terms of sub-categories, based on this scenario, alcoholics, with a 3% price increase, will lose sales of 6.9% in 2022, beverages will lose 2.9%, dairy products 2.2%, while the packaged ones will keep an upward path with 4.3%.

The second scenario, with a price increase of 5% in 2022

A second IRI scenario for 2022 “sees” a 5% price increase. Based on this scenario, sales of fast-moving consumer goods in terms of value will increase by 1%, food and beverages by 1.8%, personal care products will lose 3.5%, while home care products will increase sales in value by 5.4%.