its turnover is estimated to be more than 4 billion euros retail this Christmas, according to retail estimates, however, despite the positive sign regarding turnover, the sector still faces new challenges this Christmas.
“the Greek merchants, however, learned to work under adverse economic conditions and thru hard work to succeed. This will happen again this year” the president of the EBEP and the attica Regional Chamber Council assures APE-MBE Vasilisa Korkidis even though he believes that “the consolidated precision will be reflected in this year’s holiday market as well”.
Meanwhile, the question of how will Greek consumers shop in the upcoming holiday season? as Thanos Mavros, EY Greece partner and head of EY’s Consumer Products and Retail Sector in Southeast Europe, explains, speaking to APE-MPE, according to this year’s edition of the EY Future Consumer Index in greece, more than half of the respondents (54%). They would spend about the same, although more intend to spend 4%.
It is recalled that today, Sunday, December 15, the shops will be open from 11 am to 6 pm. The same will apply to her Next Sunday, December 22, and on Sunday, December 29, they will be able to open an hour earlier, at 10 am, closing again at 6 pm.
Effects of inflationary pressures
The president of EBEP said in his remarks to APE-MBE: Inflationary pressures continue and retail businesses will be hit again this year during the holiday season. It is no coincidence that the results of the payments and shopping survey show the significant impact of inflation on consumer behavior, with accuracy affecting 8 out of 10 Greek consumers, which exceeds the global average (7/10).The EY Future Consumer index study notes that 6 out of 10 are looking for affordable products, giving price primary importance.
“So as we enter the “heart” of the Christmas season, 5 out of 10 Greek consumers tend to find it tough to decide which products to keep and which products to remove from the Christmas basket, and 3 out of 10 consumers will spend the most money on food shopping More than half of Greek consumers plan to prioritize family obligations and social choices, 2 out of 10 will spend more and 3 out of 10 will reduce spending on non-essential goods, spending less compared to previous years.”
Always the same choices for gifts
“The forecast for retail trade turnover in December this year looks set to exceed last year’s levels and reach over 4 billion euros, although consumer preferences for gifts remain firm as the same, with clothing and footwear at the top, gifts, toys and cosmetics to follow”, noted Mr Korkidis.
“In 2024, Greece’s retail trade is expected to be completed with a small single digit increasewhich is largely real inflation and does not involve a corresponding increase in real consumption. ELSTAT figures show that the biggest companies in the sector are winning over the smaller ones, and the inflationary crisis has caused the gap between them to widen, as the “big ones” can exercise a more extensive bidding policy “.
“The value of christmas shopping is expected this year as well increased compared to last year as consumers are expected to spend more than 174 euros per person on average in 2023 and 146 euros in 2022, because the Christmas table will also be more expensive. Record the data resulting from the study of consumer trends in retail and according to the EY Future Consumer Index this increase is attributed to the inflationary pressures at 3% recorded by prices, and to the increase recorded by the average income of consumers. Purchase intention in the festive market is also linked to the age of consumers since 18-29 year olds declare that they will make purchases 7 out of 10 and indeed 3 out of 10 in branded products. Likewise among 50-64 year olds, 5 out of 10 will make a purchase based on price and 4 out of 10 are skeptical about their affordability.
It is indeed clear that the market will “heat up” with the payment of the Christmas presentbut also with the additional help given by the government to families with increased needs. The cumulative amount paid last year is expected to rise to close to 1.2 billion euros from the drop in unemployment to 9% and the 6.4% annual increase in wages in the private sector. We therefore expect that it will cover the family and social needs of the holidays, while also contributing substantially to consumer spending. It is expected that the vast majority of shopping will take place for 4 out of 10 up to a week before Christmas and for 6 out of 10 in the week of Christmas with a large proportion of the public waiting for the Christmas present to get on with their festive shopping. All these data show that retail trade is facing new challenges this Christmas, despite the positive sign in terms of turnover. Greek merchants, however, learned to work under adverse economic conditions and through hard work to succeed. This will happen again this year!”
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how can retailers effectively adapt to the challenges posed by inflation during the Christmas shopping period?
Interview between Time.news Editor and Thanos Mavros, EY Greece Partner
Time.news Editor: Welcome, Thanos! Thank you for joining us today. As we approach the holiday season, there are some mixed signals coming from the retail market in Greece. Predictions suggest a turnover of over 4 billion euros, which sounds encouraging. Can you clarify the overall sentiment in the retail sector as we head into Christmas?
Thanos Mavros: Thanks for having me! Yes, while the estimated turnover is indeed a positive sign and reflects some resilience in the market, the retail sector is grappling with numerous challenges, largely driven by inflationary pressures. It’s a complex landscape this year.
Editor: speaking of challenges, Vasilisa Korkidis mentioned that Greek merchants have learned to adapt and thrive under adverse conditions. How do you see this adaptability playing out in consumer behavior this year?
Mavros: Vasilisa is absolutely right. Greek merchants have a long history of navigating difficulties, and this year is no different. though, according to our EY Future Consumer Index, more than half of the respondents plan to spend about the same as last year, but with a notable 4% saying they intend to spend more.It reflects cautious optimism—people want to celebrate, but they’re being strategic about their spending.
Editor: that makes sense. You also pointed out that 8 out of 10 consumers are feeling the pinch of inflation. How is this affecting their shopping decisions?
mavros: Great question. Inflation is a pressing concern affecting almost every aspect of life, and our survey shows that 6 out of 10 consumers are actively seeking affordable products. This is significant; price has become a primary concern for many families.Furthermore, about half of the consumers are struggling to decide which products to include in their holiday shopping lists. It’s a balancing act between wants and needs.
Editor: With these pressures, it’s interesting to hear that many consumers are prioritizing family obligations. How do you think this focus will impact retail sales this holiday season?
Mavros: That’s a crucial point.The data suggest that many Greek consumers plan to spend most on food, reflecting the importance of gatherings and family time during the holidays.Additionally, people are likely to prioritize experiences over material gifts this year. Retailers may have to adapt by focusing on value and convenience in their offerings to align with these priorities.
Editor: As Sunday shopping hours change for the holiday season, do you think this shift will substantially influence consumer behavior?
Mavros: absolutely! Extended shopping hours can provide consumers with more versatility, especially for last-minute purchases. With many people juggling responsibilities, the ability to shop earlier or later reinforces the trend of convenience that we’ve seen growing in recent years.
Editor: with the holiday season just around the corner, what advice would you give to retailers aiming to navigate this complex market habitat?
Mavros: Retailers should emphasize transparency about pricing and focus on creating an engaging shopping experience. As affordability is on everyone’s mind, promotions highlighting value will resonate. Additionally, understanding and catering to changing consumer priorities—be it time with family or convenience—will be essential for connecting with customers this Christmas.
Editor: Thank you, Thanos! It seems that while there are hurdles to overcome, there’s also a consistent spirit of adaptation that will help both consumers and retailers navigate this holiday season. wishing you all the best for a successful and joyful Christmas season!
Mavros: thank you! I appreciate the conversation and wish everyone a prosperous holiday season.