V. Korkidis: Many retailers will extend seasonal offers at least 10 days after the end of summer sales

“Retail is trying to make the most of the sale season, with businesses prioritizing stock liquidation to meet their financial obligations and many expected to extend seasonal offers at least a fortnight after regular sales end. summer sales, to the benefit of merchants and consumers. At least demonstrably, this year’s summer sales managed to contain and reduce by half a unit the galloping inflation.”

This is what the president of the Piraeus Chamber of Commerce and Industry, Vassilis Korkidis, notes in his statement regarding the progress of the summer sales, a few days before their end, on August 31.

Mr. Korkidis reports that merchants in urban centers and regional markets appear disappointed, while in the commercial center of Athens and popular tourist areas they are more satisfied, particularly with “tourist-imported” buying traffic.

He also mentions the following:

Consumers, in the vast majority, seem to have preferred short-day vacations and daily trips to the sea, food and entertainment this year, despite shopping during the summer sales.

With reference to domestic consumption, 8 out of 10 Greeks, despite the brave discounts, were hesitant, specifically in clothing and footwear, since the sales volume was reduced by -18% and the turnover by -13%. It should be noted that according to the latest data from ELSTAT, the most popular discount branch, that of clothing, had the lowest percentage of annual price increase at just 3.4%, compared to inflation levels at 11.6%. Unlike most retail sectors, cosmetics and home goods continued this year’s upward trend during the sales season.

This year’s summer sales confirm the continuous changes in consumption habits, which adapt to the standard of living and the real disposable income of citizens. There is also a negative change in the psychology of consumers with clear pessimism in 7 out of 10 that, after the pandemic, instead of a better period without restrictions, they are forced by energy costs into “financial restriction”. In our country, the difficulties are confirmed by the fact that 45% of consumers already owe 1 billion euros from overdue electricity bills. More generally, 6 out of 10 find it difficult to meet their obligations and 8 out of 10 have reduced their purchases of consumer products. At the same time, the PwC “Global Consumer Insights Survey” in 25 countries shows that 2 out of 3 consumers buy with price as the main criterion and wait for offers to make purchases, while 1 out of 3 postpone some of their purchases. 2 in 10 are spending more this year on sales, 5 in 10 are spending the same amount as last year and 3 in 10 are spending less. The same survey reports that more than 1 in 4 consumers are cutting back on a range of goods categories, including luxury goods, designer clothes, expensive food, entertainment and even big-name food brands, due to the rise in prices, both in physical and online stores.

The picture is similar in the markets of Attica, where, however, a “mosaic” of consumption and sales of many speeds is observed between urban centers and regional markets, as well as between large chains and small shops. However, better than expected, during the period of summer sales, apart from the tourist areas of the country, the commercial traffic in the department stores, superstores, shopping centers and discount villages in the markets of Attica is shown. The last ten days of sales that we are going through are not expected to change the general picture of the 50 days, despite the return of vacationers to the “closed city”. After all, the financial difficulties faced by households will not disappear, since, in terms of expenses, autumn is expected to be difficult for households with students and students, while, in terms of energy costs, winter is even more difficult.

The total increase in trade turnover between April and June, according to ELSTAT, which in nominal terms reached 42 billion euros with an increase of 22%, compared to the corresponding quarter of 2021, is attributed to the low levels of 2021 and high inflation , while it does not reflect the entire retail trade. However, going into the third quarter, the retail trade is trying to make the most of the sale season, with retailers prioritizing inventory liquidation to meet their financial obligations and many expected to extend seasonal offers at least ten days after the end of the regular summer sales, for the benefit of merchants and consumers. At least demonstrably, this year’s summer sales managed to contain and limit galloping inflation by half a unit.