2024-03-08 18:31:21
Forced lockouts, “voluntary” exits of merchants and a drop in turnover are recorded even in the most powerful commercial squares of the city, such as Ermou or Kolonaki, which also accept these effects of the crisis and the discredit of the Athenian center.
If until recently the problem concerned the local markets, such as Patision, Exarchia, Maroussi or Chalandri, from 2008 onwards the crisis also affects the prominent “open” markets. Both in Ermou and in the streets of Kolonaki there are empty shops in a percentage that reaches 15%-20% of the total commercial area. In Ermou alone, “democracy” yesterday counted 6 large stores that are now empty. This is an image that is light years away from the recent past where in order to secure a business store in Ermou, it would have to pay “air” amounting to hundreds of thousands of euros. In the wider area of ​​the historic center, according to recent data from the National Confederation of Hellenic Commerce, ground-floor stores with hotels exceed 25%, while if arcades and first-floor stores are added, then they approach 50%.
According to market players, the phenomenon is due to both economic and social reasons. First, in recent years, 1,500,000 square meters have been added to the market in new shopping centers (malls and superstores) that “stole” turnover from traditional markets. This trend is even strengthening since, despite the recession, new malls are being added to the basin (Athens Metro Mall, River West, the discount village of McArhur Glen). Apart from the wider competition, the downtown market is also paying for distortions in real estate prices today.
In 2010, Ermou dropped 7 places in the list of the world’s most expensive shopping streets, but still remains in 19th place, despite being in a country that lives to the rhythm of the Memorandum. According to the annual Main Streets Across the World survey by the international company Cushman & Wakefield, the fall of Ermou in 2010 is due to the 15.4% decrease in store rents, while in Europe the drop was around 4.5% . However, market players estimate that the total rate of rent reduction in the prominent parts of the capital is disproportionate to the general situation. They estimate that these should have been reduced to 1/3 of 2008 levels for stores to be viable. It should be noted that for a store of 100 sq.m. in Ermou the rent was in 2008 an average of 30,000 euros per month and has fallen to 20,000 to 25,000 euros.
And given the crisis and the drop in sales, which cumulatively from 2008 to date exceeds 50% in categories such as clothing and footwear, traders estimate that rents should be reduced to 10%-20% of annual turnover from 30%-40% which is today. Finally, the merchants note that the continuous mobilizations in the Athenian center and the escalation of violence since 2008, with mass incidents or phenomena of crime, discourage both citizens from visiting the center and tourists, who presumably circulate in the area, thus affecting the part of the tourist shopping traffic. According to research calculations by both EBEA and the Athens Chamber of Commerce, on the days of the simple mobilizations the turnover of the stores drops by 50%-75%.
Penny Koutra
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