Retail: Summer sales score low

So far, the retail market is moving below expectations, with the exception of the tourist areas of the country, during the summer sale period which ends on 31 August.

And this despite the big discounts seen in most store displays. The market is now focusing on the last ten days of August, by which time holiday-makers will have returned from their summer hiatus, in order to cash in.

Financial difficulties faced by households, representatives of the commercial world point out, have prevented many consumers from making purchases, noting that the winter will be even more difficult.

The energy crisis and its effects on trade, as well as the measures needed to stimulate the market, are being discussed by representatives of trade associations, noting that to date the sales period has been sluggish, as inflation has limited both purchasing power and consumer psychology, visibly reducing customer flow and overall business turnover.

According to the president of the Athens Chamber of Commerce, Stavros Kafounis, the intense difficulties of the previous months, the competition and the lack of liquidity in the market show that the retail trade is trying to make the most of this discount period with retail businesses having set the liquidation of the available stock as a priority in order to be able to respond to the difficult economic conditions that are predicted for the coming winter.

In fact, he said that although tourism provides a cash injection for businesses, in commercial areas where tourism is not a factor, and especially in areas where the clientele consists of low-income  families, markets remain constrained and cover only basic consumer needs.

Changes

A survey by the Professional Chamber of Athens conducted by Opinion Poll proves that citizens’ standard of living  has changed dramatically, with this change negatively affecting the entire spectrum of the economy and consumer behavior.

The fact that 66.5% of consumers state that they are pessimistic about the future, while a very large percentage states that they find it very difficult to meet their obligations, is cause for concern.

More than eight out of ten consumers say they cut have back on consumer product purchases, 66.4% cut back on car travel and 66% cut back on holidays.

At the same time, a PwC (Global Consumer Insights Survey) survey conducted in 25 countries shows that two out of three consumers are now waiting for a big discount event to make purchases, while more than eight out of ten are postponing some of their purchases until such a time and only 15% say they will spend more money on sales with 53% saying they will spend the same amount as last year and 32% say less.

Cuts

The same survey notes that more than one in four consumers plan to cut back on a range of goods categories, including luxury goods (37%), dining out (34%), arts, culture, entertainment, and sports (30%) and fashion (25%). In addition, the increase in grocery prices was the biggest problem they faced in the past whether they shopped in actual stores (65%) or online (56%).