IELKA: 1.9% lower turnover in retail food in 2015

IELKA: 1.9% lower turnover in retail food in 2015

Athens, September 29, 2015/Independent Balkan News Agency

By Spiros Sideris

Sales of retail food is expected to fall 1.9% this year, despite the positive first half, according to a study by the Institute for Research Retail Consumer Goods (IELKA).

An important role in the prediction for the decline in turnover plays the combinatorial effect of increased VAT rates, the general psychology of the public and consumer food reserves from the first half and the beginning of July, it observes.

A critical factor will be the period of Christmas holidays, when 10% of total sales of the whole year takes place within a few days.

“For 2016, the estimated market decline is estimated between 2% and 4%, mainly due to the impact of the increase in VAT, but also the general economic uncertainty”, says the study of IELKA. “Because of this reduction in the market, it is estimated that the expected annual revenue of government from VAT increase will be reduced by 14-15% (EUR 90-100 million)”.