May 27, 2024

Athens News

News in English from Greece

ΙΕΛΚΑ: sales decline in 2022

The reduction in sales in 2022 is predicted by the leaders of the grocery retail sector, reports ΙΕΛΚΑ.

In particular, retail and industry FMCG (fast-growing consumer goods), according to a study by the Research Institute of Consumer Goods (ΙΕΛΚΑ).

Forecast for a 1.8% decline in sales in the second half of 2022

The survey was conducted between May 13-25, 2022 using a structured questionnaire on a sample of 150 senior and middle managers (supermarket retail chains and FMCG suppliers) from the general management and departments of marketing, sales, purchasing, economics, finance, etc. .d.

A large percentage of respondents (64%) believe that industry sales will decline in the next six months, while a small percentage (22%) believe they will increase. On average, executives who participated in the survey estimate a 1.8% decline in sales in the first half of July-December 2022 compared to the same half of 2021, while the overall assessment for 2022 by executives is similar – a decrease is expected sales by an average of 1.8%.

The positive trend recorded in the assessment of the development of the economic situation in the country in 2021, alas, is reversed. In particular, in September 2021, only 25% believed that the financial situation had worsened, and the majority of them (57%) – that it had improved. In May 2022, 87% believe that the financial situation has worsened and only 7% that it has improved. Accordingly, negative interest should have been recorded during the 2020 quarantine periods or during the financial crisis periods in 2017.

Deteriorating economic climate

According to the study, the economic climate is a picture that is driven by the sum of all executives’ estimates (sales volumes, prices, financial conditions). The index is fixed at the level of -0.11 (dramatically reduced compared to the previous indicator).

At the same time, the negative impact of the situation in Ukraine is especially strong. 98% of market leaders believe that the impact of hostilities in Ukraine will last at least until the end of the year, and 8 out of 10 respondents believe that it will continue into the next year 2023. 56% of companies expect a worse economic result (profit/loss ratio) in 2022 compared to 2021 due to military actions in Ukraine and their consequences.

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