Two weeks after Greece lifted the cap on gross profit margins in supermarkets, the market remains calm, contrary to early fears of price volatility. The measure, abolished by Minister of Development Takis Theodorikakos, had raised concerns that prices might surge abruptly—a scenario likened by some to a “compressed spring effect.” However, early signs suggest those concerns were overstated.

According to retail industry sources, there has been “absolute calm” in the market following the change. One factor that may have helped stabilize reactions was the pre-emptive action by the General Secretariat for Market Surveillance (DIMEA), which, in early June, conducted widespread document checks across the organized retail sector. The documentation collected remains under review at the Ministry of Development, possibly deterring aggressive pricing strategies.

Stronger Sales in Tourist Areas

Supermarkets operating in Greece’s tourist-heavy regions are currently reaping the benefits of peak travel season. According to data from May, supermarket sales increased by 11.6% on the islands and 9.6% in Crete. In contrast, wholesale chains (cash & carry) have seen a possible decline of up to 1%, attributed to pressure on the food service industry from elevated input costs.

June Sales and Price Trends

Data from Circana, a retail analytics firm, reveals that by late June, nationwide supermarket sales were up by 5.1% year-over-year. Private label (PL) products outpaced branded items, showing a 5.7% rise in sales versus 4.9% for branded goods.

Sales volume also showed modest but healthy growth. Total volume rose 3.8%, with both private label and branded products moving at nearly the same pace—3.8% and 3.7%, respectively. Importantly, price increases have remained subdued, with average price growth at 1.3%. Branded items saw a 1.1% increase, while private label products rose slightly higher at 1.8%.

Private Label Gains Market Share

One notable trend is the growing popularity of private label goods. The gap between private label and branded products is narrowing, with private label now holding a 27.2% share of the total supermarket market.

In specific categories, the numbers are even more pronounced. Private label accounts for 27.5% of food sales, 27.6% in household care products, and 21.2% in health and beauty. This growth reflects changing consumer behavior, as shoppers look to manage household spending without compromising on quality.

Despite the removal of the profit margin cap, price increases have so far been moderate, and consumer behavior continues to shift toward cost-effective alternatives like private label goods.