The festive schedule ‘heats up’ the market

By George Lampiris

The image of the retail stores was improved from Saturday onwards, given the operation of the stores with festive hours, something that has already started to be implemented from last Sunday, December 12th. In communication that had the Capital.gr with the president of the Athens Chamber of Commerce, Stavros Kafounis, characteristically points out that “since Saturday, December 18 the traffic has improved and it seems that on Sunday the 19th of the month the picture was good for the market. We hope it continues to move at the same pace because the period until the end of the month is considered a significant period of time for the entire retail trade “. Mr. Kafounis’s specific stance comes after a November with market movement – with the exception of the stimulus on Black Friday – being significantly limited and business hopes now being in the festive season of December.

Supermarkets Decline in November – Consumer Prioritization

At the same time the November period was down in sales for the whole market. The course of the supermarkets is also characteristic, with their turnover in November this year being reduced by 5.5% compared to last year. It is in any case indicative of the fact that consumers due to the increased costs of basic necessities, increased energy costs and ever-increasing inflation trends – at 4.8% inflation in November according to ELSTAT -, prioritize their costs, where in the first priority are classified those that relate to the repayment of direct liabilities and bills and installments of loans, while the costs of goods of secondary importance are put aside. In fact, in a recent presentation of Nielsen IQ at the conference of the Consumer Research Institute (IELKA), the CEO of the measurement company, Vassilis Dimoragas, said that inflation will lead to a halt in consumption.

Restriction of consumer demand in other sectors of retail until the first fortnight of December

Also characteristic was the placement of a high-ranking executive of the Fourlis group, who reported to Capital.gr that sportswear through Intersport and Athlete’s Foot – companies managed by the group – which were up 25% until November, then showed signs of balancing demand, which was more pronounced during November but also during first fortnight of December.

According to the data of the Chamber of Commerce and ICAP for 2021, the turnover of retailers operating in the Attica basin – excluding Piraeus, West Attica and Lavrio – is expected to improve by + 5% and above for 37.5% of business. In addition, for 36.4% of companies a new reduction of more than 5% is expected. 26.2% of the companies that participated in the survey do not foresee a significant change for 2021 compared to the turnovers of 2020.

Attica: Additional reduction of turnover by 221 million euros in retail in 2021

It should be noted that in 2020 the turnover of retail companies operating in the Attica region shrank by 2.98 billion euros. The forecast of the Chamber of Commerce for 2020 sees a reduced rate of decline in sales, however it is estimated that an additional 221.6 million euros will be lost from the market in Attica. 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 in the retail companies of the basin 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 a total of 3.2 billion euros were lost for the companies in the sector in the two years of the pandemic in Greece.

In the frame the abolition of intermediate discounts – They are considered inefficient

The institution of intermediate discounts in Greece is at a critical juncture at the same time, where in a meeting held on Friday by the Minister of Development and Investment, Adonis Georgiadis, with the new presidency of the Hellenic Confederation of Commerce and Broadcasting, the issue was put on the table. their.

The operation of the intermediate discounts takes place in the first fortnight of November and during the first fortnight of May. The side of ESEE and its president, George Karanikas, expressed the belief that the intermediate discounts are an ineffective measure and in this context called for its abolition. The suggestion of the Hellenic Confederation of Trade seems to find the leadership of the Ministry of Development in agreement at the moment.