The Hellenic Federation of Enterprises (SEV) describes the current environment facing Greek retail businesses as an “explosive mix,” marked by persistent declines in real turnover, mounting operational costs, inflationary pressures, and intensifying competition from international e-commerce platforms.
Sharp Decline in Real Retail Turnover
According to analysis by SEV’s Institute, the real turnover of non-food, non-vehicle, and non-fuel retail trade fell by 3.7% in the second quarter of 2026 compared to the same period in 2025. In nominal terms, turnover rose by just 1.2% — a gain attributed entirely to price increases rather than higher sales volumes.
Disproportionate Impact Across Business Sizes
SEV President Stavros Kafounis highlighted the growing turbulence across the sector, noting that conditions deteriorated further during the second quarter. The drop in real turnover exceeded the already negative performance recorded in the first quarter — and hit larger enterprises hardest. Large retailers reported a steep 6.1% decline in real sales. Very small businesses followed with a 3.8% drop, and small firms saw a 3.2% contraction. Only medium-sized enterprises posted growth — up 2.3% — though SEV stressed this was insufficient to offset the broader downturn.
First-Half Performance Also Negative
The weak trend is evident across the full six-month period. Real retail turnover in the same non-essential categories declined by 2.3% in the first half of 2026. Large companies registered a 2.8% fall, while SMEs collectively posted a 2.1% decrease. Very small businesses suffered the steepest decline at 3.4%, small firms fell 1.7%, and — again — only medium-sized enterprises bucked the trend, rising 3.7%.
Root Causes: Eroded Purchasing Power and Digital Shift
SEV identifies shrinking disposable income and weakened consumer purchasing power as the primary drivers behind the slump. Cumulative inflation has significantly increased household burdens for essentials such as food, housing, and energy. Consumer behavior has also shifted — with a growing share of spending migrating to global digital platforms. This structural change places additional pressure on domestic retailers, especially smaller ones lacking scale or digital infrastructure.
Operational and Financial Strain
Compounding these challenges are limited access to liquidity and sharply rising operating costs. Businesses face high tax and social security burdens while simultaneously competing with large international e-commerce platforms. SEV characterizes this dynamic as “imported unfair competition” within an unlevel global playing field.