Retailers feel brunt of crisis
One in four stores have closed down in a key central Athens shopping stretch, as consumption plummets under the weight of recent austerity measures introduced by the government, according to the National Confederation of Greek Commerce (ESEE). Survey results published by ESEE yesterday showed that 25 percent of stores, both smaller and larger sized enterprises, have closed down on Stadiou Street, versus 17 percent of the retail outlets that have thrown in the towel in the broader central Athens district. «The retail sector has been going through a tough crash test over the last year, counting many losses,» said Vassilis Korkidis, ESEE president, in a statement. «A further drop in economic activity will threaten the viability of businesses and exert serious pressure on employment.» Data showed that the recession has taken less of a toll on Ermou and Patission streets, where 15 percent of retailers are no longer operating. ESEE, however, pointed out that figures are worse in less commercial areas, which are not so resilient to the downturn. On quieter central Athens streets and some suburban shopping areas, rental signs can be seen hung across rows of shops gradually vacated since the end of last year, when consumers slashed spending in view of Greece’s growing economic uncertainty. Retailers complain that revenues from the first two weeks of the summer sales period this year have fallen by 10 to 12 percent over last year’s levels, following a 20 percent drop in 2009. Apart from sending jobless numbers sharply higher, the shutdown of stores lowers returns for property owners and weighs on local real estate valuations due to the negative image arising from deserted neighborhoods, ESEE added. The survey, held from July 19 to 30, will be repeated in six months in order for ESEE to spot trends in the sector. The trade group also plans to request a meeting with representatives of the European Central Bank, International Monetary Fund and European Commission, dubbed by the press as the troika, in a bid to stem plunging consumption and the negative fallout from the structural measures being implemented. [email protected]
