Greek consumers curb grocery spending amid soaring food prices

Rising inflation has forced Greek households to tighten their grocery budgets. Surveys by the University of Athens and IELKA show shoppers are prioritising discounts, planning meals in advance and favouring private‑label products while avoiding impulsive purchases. The summer discount period (13 July‑31 August) saw only modest sales uplift, with many stores reporting near‑zero turnover despite discounts exceeding 50%.

A McKinsey & Company study of the Greek grocery sector identifies nine trends, including compressed profit margins (EBITDA around 5% versus the EU average of 6%), limited AI adoption, and a fragmented market where small independent outlets still hold about 30% share. Competition among chains is intensifying as consumers chase promotions, and private‑label share, although lower than the EU, is growing.

The IOBE reports a cumulative 36 % rise in food prices over the past decade, driven by the pandemic, energy crisis and inflation. Per‑capita monthly spending on food and non‑alcoholic drinks rose from €310.7 in 2015 to €385.3 in 2024, a 21 % increase. Supermarket chains have entered voluntary “price‑freeze” agreements to temper further hikes, while the Independent Market Authority sets minimum conditions for such deals.

Overall, Greek consumers are reducing food expenditures, shifting to cheaper brands, and confronting higher living costs, while retailers grapple with low margins, e‑commerce competition and the need for operational reforms.