Prevailing conditions in Cyprus’ retail trade have prompted great sales in the market in a bid by stakeholders to attract more and more consumers. In fact, sales over the recent past years have lasted longer than those during the time of the island’s financial crisis.
Especially on items of wide consumption, informed sources told INSIDER.
Wholesalers estimate that, on average, the prices of their products in supermarkets are about 30% below the original ones. This, however, also depends on the starting price a company has on a product.
A number of prevailing factors are forcing both suppliers and supermarket owners to keep prices low. Primarily, the ever-increasing competition among retailers which is expected to intensify in the coming years in view of their ongoing struggle to get a bigger piece of the market share.
At the same time, the Cypriot consumer is not ready to give up promotional leaflets yet, since many of them still serve as a reference point for their shopping. In addition, there is a steady increase in products reaching the market through parallel trade.
In most cases these are offered at much lower prices than those by the official distributors. This particular situation is unlikely to change over the years, and because of it there are frequent sharp fluctuations in wholesale prices – depending on what is available on the market.
Announcing its annual results for 2018, the Eureka Group underlined that discounts on their products accounted for approximately 43% of overall sales. Howverer, their subsidiary in Greece was the one recording the highest percentage of discounts. Excluding Eureka Hellas’ state of play, the Group’s discount rate was down to around 35%.