Food retail: ‘Agathi’ to reduce prices the low turnover per square metre

The prevailing view in the government, but also in society, is that it is “inducted” – i.e. from the ejecting of international energy prices after the explosion of the war in Ukraine – but there are also some “national” reasons for accuracy in . One of these “national” reasons of high food inflation is low – in relation to European data e.g. Germany – turnover in the food retail (e.g. supermarket) per square meter of business. His sources at the Ministry of Development show the above reason as one of the ones that keeps prices high in food in Greece, although the rate of burden on the householder’s basket cannot be measured. The question why this indicator (i.e. the turnover per square metre) is low in Greece, the same sources answer that the growth rate of the capacity of retailers in recent years has been higher than the growth rate of their profits. Thus maintaining the highest possible profitability on the part of food retailers is another reason (i.e. beyond increasing energy costs, etc.) for maintaining their prices at a high level. The significant increase in the capacity of retailers, through the opening of new branches (preparing small) especially after the pandemic was financed (and) by the large increase in profits during this period and based on the traditional consumer trend of Greeks shopping from their neighborhood, highlights the same sources of by the Ministry of Development. Although in the long term the increase that has occurred in recent years in the capacity of retail food business combined with the development of competition could bring down food prices, in the short term it is a factor in maintaining prices high due to the high operating costs of their small business branches.

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