Disappointment seems to be the dominant sentiment among retailers following the end of the summer sales period. According to reports, 4 out of 10 business owners are opting to maintain reduced prices and promotional offers despite the official end of the sales season and restrictive institutional framework, in a bid to attract consumers. Vasileios Korkidis, President of the Piraeus Chamber of Commerce and Industry, stated that while the retail sector showed improvement in the second quarter of the year with a turnover of €19 billion and an upward trend of 2.5%, these expectations were not met during the July-August sales period.
He further explained that excluding vehicles, food, and fuel, the turnover for the quarter reached €6.87 billion, reflecting a 1.5% increase. However, this growth falls short by 50% compared to the inflation rate, which has exceeded 3%.
According to estimates from trade associations, small and medium-sized retail businesses have experienced weaker revenues due to reduced footfall, largely attributed to the prolonged heatwave compared to the same period last year. Overall, Korkidis emphasized that the summer sales season painted a negative picture, one that cannot be reversed by the short-term offers expected in early September.
He noted that this year’s sales highlighted a lack of disposable income, decreased purchasing power, fewer spontaneous purchases, and a decline in per capita consumption, which is 19% below the European average. Additionally, there has been a notable shift of spending from retail to services, particularly in areas such as travel and leisure, with Greek consumers opting to spend on vacations rather than consumer goods.
Consumer confidence indicators have also hit their lowest levels in nine months, with nearly 60% of households expressing concerns over potential financial difficulties in the coming year. This uncertainty is expected to impact both current and future purchasing behavior.
In summary, sales during this period in both large and small retail establishments reportedly fell between 10% and 20% below expectations. Conversely, e-commerce sales saw only minimal single-digit growth. Of concern is the fact that the second quarter’s largest turnover increase was recorded in the second-hand goods retail sector, with a surge of 36.7%.
Korkidis concluded that summer sales failed to act as a countermeasure to rising prices, which continue to worry households and negatively affect the Greek market.
The Institute of the Hellenic Confederation of Commerce and Entrepreneurship (ESEEE) recently released findings from a nationwide survey on the summer sales season. The results showed that many entrepreneurs are choosing to extend discounted prices and promotional offers beyond the official sales period to retain customer interest. ESEEE President Stavros Kafounis stated that the summer sales results continue the negative trend from the start of the year, with six out of ten businesses reporting declining sales.
Key findings from the survey include:
– 59% of retail businesses reported worse sales compared to last year, while only 10% (mainly large enterprises) reported positive growth.
– Nearly half (47%) of businesses expressed little to no satisfaction with their sales performance during the summer sales.
– 37% of entrepreneurs are maintaining reduced prices and offers beyond the official sales period, despite regulatory constraints.
– 60% of businesses adopted discount rates above 30%, with the 31%-40% range being the most popular.
– For 38% of businesses, the highest purchasing activity occurred in the first half of August, likely linked to the timing of bonus payments.
– 70% of businesses that experienced lower sales reported a decline of up to 20% compared to last year.
– Only 21% of entrepreneurs expressed high satisfaction with customer footfall.
– Despite the rise in online sales, 45% of entrepreneurs reported that in-store sales still outperformed e-commerce.
– Rising costs, reduced disposable income, supplier price increases, and inflation were cited as the main challenges facing retailers.
– 74% of businesses reported that operating costs have increased by more than 10% since the beginning of the year.
– 67% of entrepreneurs feel only slightly or not at all relieved by government support measures aimed at countering rising prices and energy costs.
Kafounis stressed that the government must take immediate action to support businesses that keep the market and employment alive, and it’s time to reassess the sales system to ensure it benefits both businesses and consumers.