The Greek retail sector, recovering yet changing

The retail sector looks to be recovering but there is a shift in development from the small local grocery stores and clothing stores to large malls and centers. The changing lifestyles and consumption patterns of households have changed the form of retail outlets. Supermarkets and Hypermarkets, as well as large department stores are spreading throughout Greece. The retail sector is one of the most dynamic in Greece. Changing consumer behavior and lifestyles have led to changes in the form of retail outlets. According to the NAI Greek retail report the figures suggest that

• The decrease in the unemployment rate led to the increase in private consumption of 1.4%, resulting in inflation.
• With Private consumption increasing combined with a fall in retail sales and consumer confidence it did not increase GDP. Therefore the overall deflation rate is 0.8% 1 percent better than the previous year.
• The consumer price index was affected by the increase in oil price shifting it towards inflation.

The Greek economic sentiment indicator saw an increase in January this did not last due to the uncertainty associated with the Greek program resulting in companies reevaluating to a more conservative level.

• Household key indicators show real household income increasing in 2016.
• Real available income declined in Greece in comparison with other EU countries yet real consumption grew during this period.
• The price of commodities has been falling in 2016 despite worldwide concerns.
• The retail trade contribution to GDP remains high although the industry has suffered greatly.
• The climax of the crisis affected trade levels negatively. On a positive note the long awaited growth has stimulated demand for trade in 2017.

The turnover index began to decline in 2010 due to the crisis it began to fall slowly but when the relative resilience reached dramatic levels in 2012 it dropped rapidly. In 2013 there was a slight improvement due to the amelioration of the situation but this did not last long dropping again in 2014 due to the political and economic uncertainty.

• The Volume index and wholesale index in trade ran a parallel.
• Books stationery and other goods had the lowest fall throughout this period. In Greece 68.6% of retail enterprises rent their company.

In conclusion the Greek retail market looks to be improving. International companies are showing confidence in the retail market and a slight improvement is evident. There is a positive outlook with sales volume and turnover increasing.