Soaring prices are taking a toll on Greek consumers this summer, dampening both retail activity during the seasonal sales period and the ability of many to take time off for holidays.
Greece’s summer sales, which began on July 14 and run until August 31, usually offer shoppers a welcome opportunity to purchase goods at lower prices. This year, however, the market has remained sluggish as inflation continues to squeeze budgets. Many consumers are focusing strictly on essentials and searching for the best possible deals, avoiding impulse purchases altogether.
“The purchasing power has dropped significantly. Two-thirds of household spending now goes toward basic needs,” said Theodoros Kapralos, President of the Piraeus Chamber of Commerce. “Shoppers buy only when there is a real need. Based on May’s figures, we saw a 5.6% drop in sales volume and a 4.4% decrease in actual turnover.”
The financial strain is also keeping people at home. According to recent estimates, one in two Greeks will not take a holiday this summer. Rising travel costs and other pressing financial obligations are cited as the main reasons.
Ioannis Chatzitheodosiou, President of the Athens Chamber of Tradesmen, noted that Greece has the lowest consumer purchasing power in the European Union, a factor that is limiting both holiday spending and retail activity. “It’s clear from the current sales season that performance will be poor. With 60% of small and medium-sized businesses already in debt, the outlook for the future is worrying,” he said.
