More than half of the commercial businesses (57%) participating in the sales recorded lower sales compared to last year, according to the nationwide survey for the summer sales of 2024 carried out by the Hellenic Confederation of Commerce and Entrepreneurship (ESEE).

As ESEE notes in its announcement: “As can be deduced from the results of the survey, there is a concern about the course of the market. It is clear that the developments in the retail trade will depend both on the course of inflation and on the easing of geopolitical tensions and conflicts, combined, of course, with the performance of the international economy.”

It is further added that the 2024 summer sales were completed amid multiple controversies.

The recovery, stresses ESEE, does not seem to be taking hold in the market due to the maintenance of upward pressures on operating costs and tax liabilities. At the same time, the cumulative corrosive effect of inflation has shrunk the available incomemaking consumers particularly wary, with uncertainty in the international environment remaining.

The positives include the tourism figures for the first half of the year, in terms of incoming travel traffic and travel receipts. However, the effects are limited in the tourist areas, while the weak domestic production base implies a burden on the current account, shrinking the already limited fiscal space

The investigation

ESEE, publishing the results of its research, notes that “the pressures on retail trade are maintained in the midst of a fluid business environment”.

The detailed findings of the research are as follows:

– More than half of the commercial enterprises (57%) that participated in the sales recorded lower sales in comparison to last year. For 37% of businesses, sales moved at the same levels as in 2023, while only 6% of businesses saw an increase in turnover.

– Interesting conclusions emerge from the performance of companies by large geographical area. The island regions and Attica seem to have performed relatively better compared to the rest of the country, also due to the favorable tourist traffic this year (BoT: +12.2% travel receipts in the first half of 2024).

– Therefore, it is not surprising that almost half of entrepreneurs (45%) were not satisfied at all or somewhat satisfied with the sales them during the summer sales. On the other hand, only 6% appear as very satisfied.

– These developments are also confirmed by the drop in store traffic, with more than half (55%) reporting a decline. At the same time, 36% of businesses consider that traffic was at the same levels as last year.

– The above findings raise concerns regarding the potential for recovery of the commercial market. However, two parameters should not be forgotten: On the one hand, the fact that the culture of sales outside physical stores has now been established. On the other hand, the fatigue observed in the market due to the cumulative effect of multiple crises and mainly the contraction of purchasing power as a consequence of accuracy..

– However, even in the cases where turnover increased during the summer sales, this increase did not exceed 10% for more than half (56%) of the businesses.

– Conversely, in cases where turnover fell during the summer sales, the decline for 69% of businesses was stronger and exceeded 20%.

– For four out of ten businesses (44%), the best sales period, in terms of purchasing activity, was July, a picture that has become normal in recent years. However, the first fortnight of August also shows remarkable movement.

– There were no changes regarding the amount of the discount rate as 39% of businesses discounted between 21% and 30%. However, a large percentage of businesses (32%) adopted discounts of more than 40%, a typical indication of the pressures in the industry and the need to find liquidity.

– The percentage of businesses (85%) that consider that is overwhelming this year consumers were more restrained in their markets compared to previous years.

– Despite the relevant discussion, only 4 out of 10 companies (42%) of the sample can sell outside a physical store. This finding is characteristic no longer of the culture and resistance of traders to the internet and new technologies, but mainly of the objective difficulties imposed by the cost of digital transformation.

– The negative effects of the above development become more understandable if it is taken into account that for the 28% of businesses that had the possibility of remote sales, the turnover outside the physical store exceeded 20% of the total turnover of the summer sales.

– 74% of businesses have been negatively affected by energy cost increases to a very to very great extent. This burden underlines the magnitude of the problem, especially in view of the arrival of the energy-consuming winter, putting in doubt the financial viability of the businesses themselves. For this reason, the need for energy shielding and maintaining support policies through targeted interventions emerges, once again, as a strong parameter of economic policy.

– For 58% of businesses, operating costs continue to increase within 2024, at a rate exceeding 10%. This element is indicative of the magnitude of the cumulative pressures exerted on the sector after the outbreak of the pandemic crisis.

– In an already burdened business environment, 71% of businesses stated that the new tax bill negatively affected them to a great to very great extent, essentially putting their viability in doubt.