On the one hand, soaring inflation in Greece and the inflation that have forced households to spend the majority of their disposable income to cover basic needs, such as food, health, housing, etc., on the other hand, ever-increasing competition, have accelerated the tectonic changes that have slowly but steadily been underway in the market in recent years.

The picture revealed by this year’s report by the Institute of Commerce and Services of the Hellenic Confederation of Commerce and Entrepreneurship (INEMY ESEE) is clear as to the prevailing trend: Small shops are decreasing significantly and at the same time the “Greek product” is losing significant ground and finally disappears…

The size of businesses

According to the authors of the report, with regard to the size of businesses, the overall picture reflects a gradual redistribution of businesses towards intermediate turnover scales, “probably as a result of their adaptation to economic conditions and market developments”.

According to the data presented, the percentage of enterprises with a lower turnover (up to 20 thousand euros) continues its downward trend, recording 32% in 2024 from 36% in 2023 and 40% in 2022.

Respectively, the upward trend is observed in the category of enterprises with a turnover of 20,001 euros to 50 thousand euros, which reaches 39% in 2024 compared to 38% the previous year.

Also significant is the increase recorded in enterprises with a turnover between 50,001 euros and 100 thousand euros, whose number is significantly increasing, reaching 24% in 2024 from 13% in 2023, thus recording the largest increase compared to the other categories.

On the contrary, the category with a turnover of over 100,001 euros appears to be shrinking, reaching 6% in 2024 compared to 13% the previous year, returning to levels lower than previous years.

‘Made in Greece’ is shrinking

At the same time, the report records a gradual decrease in the percentage of domestically produced products currently available through retail. Thus, although in 2020 Greek products had a 72% share of all purchases made by domestic retail businesses, in 2022 it decreased to 61%, in 2023 to 59%, to reach 36% in 2024!

A development that shows that the effort to shift to Greek production that was strongly recorded as a trend with the outbreak of the covid19 pandemic – also due to problems in international supply chains – has finally deflated!

According to the researchers, the decrease in domestic origin after 2022 is offset by an increase in imports, especially from the European Union (from 22% in 2023 to 35% in 2024). A significant upward trend is recorded in imports from Asia, reaching 21% in 2024, a finding that may be linked to the expansion of businesses’ commercial networks to new markets, mainly in search of cheaper products.

Commercial relations are disrupted

This is probably the explanation for the more frequent interruption of cooperation with suppliers in recent years, despite the fact that there has always been a clear tendency in Greek retail to maintain stable partnerships, even in the difficult years of the crisis.

According to the survey, the percentage of businesses that discontinued cooperation with a supplier in 2024 increased to 36%, from 25% in 2023, recording the highest proportion among the monitoring years, signaling a significant change in B2B relations.

Challenges

All of this, of course, is largely a result of the major challenges that commercial businesses have to face and that have been increasing in recent years.

The results of the survey show that the main challenges faced by businesses are related to economic pressure and external price changes. Managing price increases is the most burdensome challenge, which indicates that the increase in the cost of purchasing products and energy costs strongly affects the operation of businesses.

Immediately after, financial obligations and liquidity are key problems, showing that many businesses have difficulty meeting their financial commitments and securing sufficient funds for their sustainability.

According to INEMY ESEE researchers, the lack of liquidity is directly linked to increased prices and difficulties in accessing financing.

The cost of digital transformation is at moderate levels, demonstrating that businesses recognize the need for technological adaptation. Access to finance appears to be a moderate challenge compared to the other challenges to be investigated, a finding that could be interpreted as smaller businesses, due to their long-term exclusion from financing programs, no longer recognize access to finance as a challenge but rather as a problem, given both the criteria for their inclusion, the commitments and ultimately the excessive taxation on the financing itself.

On the contrary, the cost of the green transition and the transfer to the next generation appear as the least pressing challenges. This may be due to the fact that most businesses do not prioritize sustainability investments or their succession, at least at this stage.

Overall, businesses seem to be more oriented towards addressing the immediate financial pressures of short-term challenges, such as price increases, liquidity and tax obligations.

At the same time, issues such as the green transition, digital development and their succession to the next generation remain important, but do not constitute the most pressing needs at the present stage.