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A study of the Institute of Trade and Services of the National Confederation of Trade showed a decrease in prices of all goods without exception - prices of clothing and footwear in the period 2010-1012. The general observation is that small businesses are cutting prices more easily, while big companies, although they can afford it, are not doing it enough.

Analysts explained that it cannot be predicted now whether the price strategies of small and medium-sized companies will remain the same in the future. On the contrary, it can be assumed that the decrease in prices in clothing and footwear has been completely exhausted and a further decrease is not possible any more, especially in combination with taxes and other charges.

During the same period, food prices are rising. During the period 2008-1013 the largest increase was marked in the prices of sugar, eggs, rice and chocolate, while fruit juices and flour didn’t rise significantly.

Here the issue with prices is even more complicated, because in this sector the pricing of products does not depend on the size of the company in terms of many of the goods. On the contrary, producer prices are a key factor for big stores, and the wholesale trade in this sector, especially for small businesses, is a key factor in the formation of prices.

The turnover in small and medium-sized companies is declining

The results of the study made it clear that there is a decline in prices in clothing and footwear in small shops, a trend which is further strengthened if we take into account the pricing after due negotiation. The results of the study apply only to companies with a turnover of less than 200,000 euro operating in Athens.

There are no official data showing the turnover of small businesses. However, studies show that retail trade turnover in general small firms has decreased by about 55% from 2009 to today, and the data for 2013 showed that turnover has decreased by 30%. In this case, the adjustment of the pricing policy of small businesses towards a decrease in their turnover is clear.

The main conclusions of the study regarding clothing and shoes are the following:

Prices in 2012 decreased by 21.3% compared to 2011

Selling prices of goods are significantly different from indicated prices, because customers will not buy if they are not able to agree on a discount. The comparison between official prices in 2012 and 2011 showed a significant decrease in prices.

Compared to 2011, price bargaining has taken on a universal character, even for products with low prices (of about 3 euro). Even with the new, reduced price after the bargaining, customers want a receipt.

In most cases, traders proceed to price reductions, which are the only way to attract customers.

The overall shrinking of work in small and medium-sized businesses for 2010-2012 was between 40% - 60%, according to information from businessmen. The main reason is the reduction in income, as well as cuts in holiday bonuses in the public sector. Another reason was the uncertainty about the future economic development.

New taxes exacerbated the situation

According to the study, the imposition of a number of new taxes on businesses significantly worsened their results. Despite the pressure, however, they are trying to lower their prices and keep at least part of their work.

The trend of increasing oligopoly is becoming stronger

Analysts proved the existence of oligopolistic characteristics of the Greek food market (where production and sales in one segment of the market is controlled by a small number of competing firms). As mentioned, the annual increase in the 16 largest supermarket chains despite the economic downturn shows that the trend of increasing oligopoly is becoming stronger. The turnover of supermarkets is also increasing and this coincides with the decrease of the turnover of small shops on the market.

Sugar prices

In terms of many products, prices are determined on the international market and the reduction in supplies is increasing prices. The most typical example is the volume of sugar production in Greece, which is limited by EU provisions. The Greek sugar factory, following the curtailment of sugar production, in practice has already been put into the process of sale.