VAT hikes, con­sump­tion drop cre­ate vi­cious cy­cle in food re­tail

Kathimerini English - - Focus -

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 yearon-year by the Hel­lenic Sta­tis­ti­cal Author­ity and an­nounced yes­ter­day, 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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