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Greek Supermarkets Slashing Prices to Meet Consumer Needs

The Greek economy is in turmoil at the current time and this is impacting heavily on consumer spending.  Sales in health and wellness food and beverages have subsequently dropped as consumers tighten their belts.
Greek consumers are increasingly searching for value for money and this is driving increased sales in private label products and also the supermarkets buying strategies. Supermarkets are reacting to the increased need for the better value for money products by offering more shelf space to the private label and own supermarket brands.
In 2010, retailers’ own products reported a marginal increase in value and larger increase in volume to the detriment of unit prices.
Branded products have up to now dominated the health and wellness food sector although this is changing as a result of rapid switch to value for money products and a change in consumer behaviour. Marketing departments are trying to keep their defence lines and promote goods through discounts and special offers.
Branded products in the health and wellness food sector are in a stronger position as private label alternatives are not available throughout the sector. Food intolerance products have reported a period of growth in sales during 2010 despite the decline in sales across other sectors.
Despite a marginal decline in sales within the Greek food sector, organic product sales remain strong and are still gaining market share. The shift towards more healthy eating amongst Greek consumers is driving sales in the organic food market. Manufacturers of food in Greece are having to cut margins in order to compete in an increasingly price competitive industry.
The larger supermarkets have reacted to consumer needs by implementing large discounts and promotions. The smaller outlets which are often independent chains are finding it difficult to compete with these reduced prices and are restricted on the level of discounts they can offer their customers. As a result, consumers prefer the larger supermarkets.

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