Tornos news | Sharp price increases are expected to deeply reduce Greek supermarket sales

Food prices in Greece – already high due to a 24% value added tax (VAT) – have jumped so high that supermarkets are bracing for a drop in sales.

Even staples, such as coffee, milk and bread, are feeling the pinch, Kathimerini said in a report on the expected further decline in sales with markets shaken and people keeping their wallets in their pockets.

“I am no longer optimistic about a turnaround by the end of the year. We still have increases ahead of us that have not yet impacted the sale price,” Aristotelis Panteliadis, chief executive, told reporters. of the Metro group.

January sales during the lingering COVID-19 pandemic fell about 8%, the report says, with revenue falling 1-1.5% as rising prices backfired him and led to a further decline in sales.

With energy and fuel prices soaring following Russia’s invasion of Ukraine, there was a confluence of storms hitting supermarkets and this was reflected in the fact that people stopped buying even basic products.

“We cannot pass on energy, transport and labor costs to retail prices; they are controlled by authorities based on profit margin regulations,” Panteliadis said.

He added that “the hikes will obviously trickle down to consumers. They are generally passed on with a delay of two to three months from the time we receive prices from suppliers, as we try to contain them by purchasing large quantities.

The boss of the group that controls the Mymarket chain has indicated that the anti-gouging measures put in place by the New Democracy government which were due to end in June will probably be extended until the end of the year.

He said, without being named, that it was a bad idea because “when you lock in profit margins, you stop the market from working”, but did not say the market would close.

Panteliadis estimates that Metro Group’s profits will still match those of 2021 with 23.5 million euros ($25.25 million) in pre-tax profits, compared to 24.12 million euros ($25.92 million ) in 2020.)

Most of this revenue comes from wholesale operations (the METRO Cash & Carry network), with tourist spending expected to provide a boost and fill the gap in fewer purchases by Greek households.

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