Retail in decline

According to the leadership of the Piraeus Chamber of Commerce and Industry, one of the most limited sectors in EU is retail.

ΕΒΕΠ reports that the RRI (Retail Restriction Indicator) of the European Commission confirms that it is one of the most regulated business sectors in the EU. The European organization EuroCommerce, which represents retail and wholesale trade, emphasizes that the business sector has remained the same or even worsened since 2018when the index was set.

Retail provides essential services but faces a challenging environment with high inflation and at the same time needs to be able to support EU digital, sustainability and skills targets.

RRI provides a useful tool for identify limitationshindering the digital transformation, sustainability and long-term competitiveness of the commercial sector. The index mainly deals with restrictions on opening retail outlets, such as permits required to open stores and local operating restrictions. Obviously, more rules apply to retail, but they apply to other sectors as well.

There are 3.5 million retailers in Europe, i.e. 1 in 6 of all businesses, providing 16.5 million jobs, especially for young people. In recent years EuroCommerce has taken a different direction by preventing states from imposing additional legal requirements, political pressure, and increased scrutiny across the EU..

Thus supermarkets will be able to lower food prices or keep them low. According to a recent study published by EuroCommerce in collaboration with McKinsey, the answer may be a reduction in the burden of regulatory spending, which shows margins in food retail have declined.

Therefore, EuroCommerce calls on the Commission, Member States and the European Parliament to actively use RRI to assess how the regulatory burden in this sector can be reduced. This will increase competitiveness and innovation, and offer consumers greater choice and affordability. It will also be a step forward in meeting the goals of increased integration and reduced compliance set by the EU in its recent post-2030 communication.

EVEP President and EuroCommerce member Vassilis Korkidis said he agreed to discuss within the task force the introduction of a single market (SMET) to help remove barriers as well as administrative costs in the commercial area. He also welcomes the introduction of RRIs and believes that the EU should consider expanding them in the future through country-specific recommendations, asking States remove unnecessary and unjustified barriers for retailers and wholesalers. In Greece, the index shows a significant improvement between 2018 and 2022 as it now fluctuates at higher levels than the European average. Thus the trade sector can consider RRI as a tool that during the transition period will act as a roadmap for the retail and wholesale ecosystem in every EU market and of course the Greek market.

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