Cyprus retailers are reporting stronger trade as the seasonal discount period reaches its peak, with price reductions of up to 70% drawing shoppers to clothing, footwear and electronics. The improvement remains uneven, however, as weaker tourist spending and high prices continue to place pressure on the wider market.
Clothing and footwear drive demand
Cyprus Chamber of Commerce and Industry (CCCI) General Secretary Philokypros Roussounides told CNA on Friday that the information received by the chamber points to positive trading conditions.
Consumer activity has strengthened recently, he said, providing a welcome boost for retailers and making a range of products available at more attractive prices.
The greatest demand is currently for clothing and footwear. With the new school year beginning in a few weeks, purchases of school-related items are also expected to increase.
POVEK General Secretary Stefanos Koursaris said seasonal sales in the clothing and footwear sectors were now at their peak, with discounts exceeding 50% and 60% in many cases and reaching as much as 70% in some shops.
“This is therefore a very good period for shopping,” he said, adding that significant discounts were also available on electrical and electronic goods.
Tourism and high prices weigh on retailers
Despite the increased activity, Koursaris said the market continues to face pressure from international developments, reduced tourism and the high cost of living.
He pointed to a decline in both visitor numbers and tourist spending, while rising costs for essential goods, electricity and fuel were also limiting consumers’ purchasing power.
More shops turn to online sales
Roussounides said a growing number of retailers were using the internet to promote their products, attract customers to physical shops and increase online sales.
The trend is expected to grow as technology advances, he said, stressing that retailers and other businesses must be able to keep pace with the changes.
Limited impact from €3 customs charge
The temporary €3 customs charge applied to each separate category of goods contained in small parcels worth less than €150 from third countries has not significantly affected consumer activity, according to both organisations.
Roussounides said the charge remained relatively small compared with the cost of products bought from abroad and did not appear to be discouraging shoppers at this stage.
However, he added that the measure could not be said to have benefited Cypriot shops. Local businesses now compete at a global rather than purely domestic level, he said, underlining the need to make them more flexible and competitive.
Koursaris also said no major change had been recorded in the Cypriot market since the charge was introduced. Several exemptions remain in place, he noted, while online retailers have adapted their operations, limiting the measure’s effect on trade.
POVEK calls for fixed sales periods
POVEK has renewed its call for officially regulated sales periods, arguing that year-round discount campaigns can mislead consumers and undermine confidence in genuine clearance sales.
The organisation is proposing at least four regulated sales periods each year, corresponding to the four seasons, so that consumers can once again distinguish and trust genuine discounts.
The current seasonal sales are expected to continue until around the end of August, according to CCCI and POVEK.
Source: CNA
