Despite the sales season lasting nearly a month and a half, from January 13 to February 28, and including two Sundays with open stores, industry representatives report lackluster consumer spending.
Stavros Kafounis, president of the Hellenic Confederation of Commerce and Entrepreneurship (ESEE), painted a grim picture of the retail sector’s current state, calling it "the worst period for commerce." While turnover has technically increased, he noted that businesses are struggling financially due to rising operational costs and shrinking consumer purchasing power. Shoppers are prioritizing essentials over discretionary spending, cutting back on non-essential goods to cover basic needs.
A clearer assessment of this year’s sales performance will come from a study conducted by ESEE in collaboration with Greece’s three largest commercial associations, based in Athens, Thessaloniki, and Piraeus. In the meantime, Kafounis hinted at possible changes to the structure of sales periods, including their timing, though no specifics have been provided. Any potential adjustments, he assured, would be made following consultations with social and business stakeholders.
Vassilis Korkidis, president of the Piraeus Chamber of Commerce and Industry, echoed concerns about weak consumer activity, stating that "the retail market is operating at reduced capacity." Despite attractive discounts, only four in ten consumers in Greece "want and can afford" to shop during the sales.
While overall retail revenues may appear higher than last year, this is largely attributed to inflation rather than an actual increase in consumer spending.
Retailers expect a 3% rise in discount-season revenue compared to the first two months of 2024, when sales totaled €6 billion. However, this figure barely keeps pace with inflation, which stands at around 3%, according to Eurostat.
In key retail sectors like clothing and footwear, the picture is even bleaker. While prices in this category dropped by an average of 23% in January compared to December, these reductions fell short of the heavily advertised 40% to 50% discounts.
Inflation for clothing and footwear has reached 5.4%, meaning that even though consumers are spending more, they are purchasing fewer items.
