Super market food sales in Greece will drop by 1.9 percent in 2015, an analysis by the Research Institute of Retail Consumer Goods (IELKA) shows.
Despite the fact that in the first six months of 2015, there was a 1.25 percent increase in sales, and July showed a spectacular 6 percent rise, an increase in the value added tax, the upcoming tax bills and general consumer psychology will bring an estimated drop of 5 percent in food sales.
According to IELKA, the Christmas period will be crucial for food retail sales. About 10 percent of yearly retail sales are taking place during the Christmas holiday season.
In 2016 IELKA projects a 2 to 4 percent drop in super market food sales due to VAT rate increaes and the climate of economic uncertainty. At the same time, yearly state revenues from VAT are projected to drop 14-15 percent, translating to a potential loss of 90 to 100 million euros.
Since the beginning of the Greek economic crisis, super market food sales have started dropping steadily and IELKA estimates that losses will exceed 25 percent in eight years.
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