City center outlook gloomy for retailers
Retail store prospects in the center of Athens for the remainder of the year are grim after difficult economic conditions resulted in an increase in unleased commercial space in the first half of the year, a traders’ group said yesterday. The Athens Traders Association (ESA) said its six-monthly index, which measures the rental space available, rose to 15.1 percent at the end of June from 13.8 percent at the end of last year. «The worsening of the index reflects the general problems encountered due to adverse economic conditions,» ESA said. Athens’s central shopping district is one of the city’s main retail areas, drawing large crowds of shoppers every weekend. The cost of rent at prime locations in the district ranks among the most expensive in Europe. The traders’ group, however, argues that intense competition from recently introduced department stores is eating into the market share held by small and medium-sized businesses. «The drop in indices in combination with the existing negative economic conditions does not allow room for optimism in the next six months,» ESA said. Other factors weighing on the sector include a lack of a commercial city planning register, proposals to ban cars from some streets, increases in operating costs and a drop in demand due to slower loan growth, ESA added.
