BUSINESS

VAT hikes, consumption drop create vicious cycle in food retail

DIMITRA MANIFAVA

TAGS: Economy

A vicious cycle created by the drop in consumption and the value-added tax hikes has led to several retailers and suppliers raising their prices to offset losses, in turn aggravating the situation further for consumers and the market itself.

This explains the 7.2 percent annual drop in supermarket turnover recorded in May year-on-year by the Hellenic Statistical Authority and announced on Friday, as Greek consumers are cutting down even on their food spending to meet their other obligations.

Smaller food retailers, such as butchers and grocers, saw a 7.4 percent annual drop in May.

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