Summer Discounts Fail to Boost Greek Retail

Greek retail faced a disappointing summer sales season, with four in ten business owners feeling compelled to maintain low prices and ongoing promotions to attract consumers, even after the official discount period ended, according to the President of the Piraeus Chamber of Commerce and Industry, Vassilis Korkidis.

Retail turnover showed signs of recovery in the second quarter, reaching 19 billion euros with a 2.5% upward trend following nearly two years of decline. Yet, the momentum stalled in July and August. Excluding vehicles, food, and fuel, quarterly turnover rose just 1.5% to 6.87 billion euros, lagging behind inflation, which surpassed 3%.

The shortfall reflected broader economic pressures. Reduced disposable income, weaker purchasing power, and fewer spontaneous purchases contributed to a 19% gap in per capita consumption compared with the European average. Summer spending of roughly 7 billion euros shifted away from retail sectors like clothing, home goods, electronics, and furniture, moving instead toward services.

Many Greek consumers prioritized holidays over products. Vacation expenses, family outings, and housing costs absorbed much of the summer bonus payouts, totaling 1.6 billion euros in the private sector.

Consumer confidence also fell to its lowest level in nine months, with nearly 60% of households expecting financial strain over the coming year, signaling continued caution in future spending.

As a result, retail sales during the summer discounts declined between 10% and 20% in both large and small stores, while growth in e-commerce remained modest and single-digit. Interestingly, the second quarter’s strongest retail growth came from second-hand goods, which surged 36.7% compared with the previous year.

Overall, summer discounts failed to offset inflation’s impact, leaving households under pressure and the retail market subdued.

A recent survey by the Hellenic Confederation of Commerce and Entrepreneurship (ESEE) confirmed that many business owners plan to keep prices low temporarily to draw customers. Six in ten reported lower sales, highlighting the ongoing struggles of small and medium enterprises and underscoring the need for targeted government support.

The findings suggest a pressing need to reassess the discount system to better support both businesses and consumers, ensuring that seasonal sales can deliver meaningful relief amid rising living costs.

Source: Tovima.com