One of the main concerns of businesses engaged in retail trade is the change of consumer habits and the wider uncertainty in the market. In terms of their business, low turnover and high fixed liabilities are their main concerns.
The turnover of small businesses in the Attica region in 2020 was reduced by 2.98 billion euros, while in 2021 the drop in turnover is expected to be 221.6 million euros. The change for 2020 compared to 2019 was -28% and for 2021 it is expected that there will be a decrease of 2.9% compared to last year. The total sales of 2019 were 10.65 billion euros, in 2020 they decreased to 7.67 billion euros and in 2021 they reached 7.45 billion euros. This practically means that for the companies of the sector a total of 3.2 billion euros were lost in the two years of the pandemic in Greece.
Forecasts for 2021 show an improvement in turnover with an increase of over + 5% for 37.5% of companies. On the other hand, 36.4% of the total predicts a new reduction of more than 5%. 26.2% of companies do not predict a significant change for 2021 compared to 2020.
It is noted that most of the retail companies and as it results from ICAP research for the Athens Chamber of Commerce that concerns the region of Attica (except Piraeus, Attica and Lavrio) recorded a drop in turnover of more than 10%. Particularly:
– 72.2% of retail companies showed a decrease in turnover of more than 10%.
– 18.7% of companies moved with a turnover reduction of over 50%
– 31.6% of companies recorded a drop in sales from 30% to 50%
– 13.4% did not show significant changes
– 10.7% recorded an increase in sales
Unprofitable companies have increased
In addition, during 2020 there was a strong increase in the percentage of unprofitable companies in the retail sector to 61.8% from 22.2% in 2019, with a parallel decrease in profits to 31.7% from 65.9% in 2019.
How many were suspended, received guarantees and a loan as an antidote to the pandemic
During 2020, 34.6% of the retail companies were in operation without joining a support framework, while 30% were in a state of suspension given the relevant ministerial decision. In addition, half of the retail companies joined a measure of financial support during the previous year.
More specifically, business support for dealing with the effects of the pandemic is distributed as follows:
– 43.9% support at the level of employment
– 28.1% with the provision of guarantees
– 15.8% loan measures
– 12.3% tax measures
A significant part of the retail companies and specifically a percentage of 47.1% considered that the support measures for the companies were insufficient and 27% stated that the measures are sufficient but to a small extent.
Retail workers lost 1.2 billion
At the same time, a 1.2 billion euro drop in retail workers’ incomes was caused by a drop in the turnover of micro-retailers in 2020. According to the same data, retail employment shrank by 5.4% in the previous year. year, while this year is expected to increase by 1.2%. The multiplication of jobs in all sectors of economic activity was estimated at a reduction of 140,000 employees.
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Source From: Capital
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