In the past few days, a sense of apprehension has emerged within the retail industry following announcements regarding the removal of reduced tax rates on fuel and the subsidy for electricity. At the same time, there is a growing worry about potential price hikes on consumer goods.

To shed light on this matter, Brief interviewed key industry figures, including Andreas Hadjiadamou, the Executive Secretary of the Association of Supermarkets, Marios Antoniou, the General Secretary of the Pan-Cyprian Retail Trade Association (PASYLE), Fanos Levendis, the General Secretary of the Pan-Cyprian Association of Entertainment Centers Owners (PASIKA), and Marios Drousiotis, the President of the Cyprus Consumers' Association. They shared their insights and assessments regarding the expected consequences following the removal of these measures.

It is widely agreed that the recent increases in fuel prices and electricity bills will have a further detrimental impact on the purchasing power of households. Naturally, this will also affect both retailers and owners of entertainment centers.

Early signs indicate a decline in the retail sector, as reported by Marios Antoniou, the General Secretary of PASYLE. He noted that there has been a decrease in sales in recent days following the announcements. However, Antoniou stressed that it will take some time to gauge the full extent of this impact and draw more accurate conclusions. When asked about potential price increases on products and goods, Antoniou explained that it ultimately depends on the intentions of suppliers, which will become evident within the next 30 to 40 days.

On a positive note, Andreas Hadjiadamou, the Executive Secretary of the Association of Supermarkets, confidently stated that there are no justifiable grounds for price increases in supermarkets. He emphasized that such actions would be deemed unwarranted and unjust.

Fanos Levendis, the General Secretary of PASIKA, expressed his belief that, given the current summer season and tourism influx, any negative changes in the entertainment center industry are unlikely to occur. Furthermore, he stated that entertainment centers do not plan to raise their prices.

Marios Drousiotis, the President of the Cyprus Consumers' Association, highlighted that a significant portion of consumers have already begun limiting their purchases to essential items due to previous price increases. He further explained that the removal of support measures will adversely affect even those households that were previously in a relatively stable economic position. When questioned about the possibility of price increases, Drousiotis firmly stated that such justifications are not acceptable. However, he acknowledged the likelihood that some individuals may take advantage of the situation, as has occurred in the past, and attempt to justify price hikes.

As the retail industry braces itself for potential challenges, stakeholders will closely monitor developments in the coming weeks to better understand the implications of these measures. The impact on consumer behavior and business operations will become clearer over time, enabling a more comprehensive evaluation of the situation.