Greece’s small retailers are sounding an increasingly stark warning about conditions in the domestic economy, as weaker consumer spending and rising operating costs squeeze businesses already facing intense competition from large chains and online platforms. A survey of 409 small and midsize retail businesses in Athens found that 71.3% recorded lower revenue during this year’s summer sales compared with the same period last year.
The findings from the Athens Chamber of Commerce suggest that conditions on the ground remain challenging despite Greece’s stronger headline economic performance in recent years.
Retailers point to persistent cost-of-living pressures as a major factor. Higher prices and housing expenses have forced households to reconsider spending priorities, leaving less disposable income for discretionary purchases. Smaller merchants, meanwhile, are confronting elevated operating costs while competing against multinational retailers and e-commerce platforms with greater capacity to offer discounts.
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The survey also revealed overwhelming dissatisfaction with Greece’s regulatory framework for sales and promotions. Some 98% of respondents said the rules should change, while 93.4% said the system of continuous promotional offers primarily benefits large companies, multinational groups and online platforms at the expense of smaller retailers.
Another 98% said stricter rules governing promotions, including changes to legislation adopted in 2022, could restore the importance of Greece’s traditional summer and winter sales periods.
Thanos Tsangaris, president of the Athens Chamber of Commerce, has called for government talks, stable market rules and measures to support small and midsize businesses. His warning extends beyond a disappointing summer: Without meaningful intervention, he said, a substantial number of smaller businesses, particularly in regional markets, could fail within the next two to three years.
The findings expose a tension beneath Greece’s economic recovery. Improving macroeconomic indicators can coexist with mounting pressure on household budgets and independent businesses.
