Number and turnover of retail SMEs on the wane

Number and turnover of retail SMEs on the wane

The turnover of small and medium-sized retail companies in Greece has been shrinking at an annual rate of 5 percent since 2013, while the number of shutdowns in the period from 2008 to 2013 reached 30,000. This translates into a 16 percent total reduction in shops, climbing to 28 percent in Attica, a National Bank of Greece report on retail sector SMEs showed on Wednesday.

Although the strong consumption model before the crisis concealed the weaknesses of the market, the data show a persistent low capacity of added value for Greek SMEs in comparison with other European Union countries. Their low pace of adjustment and their dependence on a small number of suppliers are two of the sector’s typical structural problems that have existed since before the crisis.

This a particularly fragmented sector, mainly consisting of small and to a great extent family-run enterprises, which de facto constitutes a considerable structural distortion.

Small retail enterprises account for 71 percent of the sector’s employment – against 56 percent for all Greek SMEs in total and just 35 percent for retail SMEs in the EU – and for 66 percent of the total turnover of retail commerce in Greece – compared to 25 percent for retail SMEs in the EU.

Subscribe to our Newsletters

Enter your information below to receive our weekly newsletters with the latest insights, opinion pieces and current events straight to your inbox.

By signing up you are agreeing to our Terms of Service and Privacy Policy.