Accuracy: The household basket is cheaper in Greece – What research showed – 2024-09-18 17:20:57

Lower are the prices of products on the shelf in the domestic market according to an IELKA survey for accuracy, as it emerged from the comparison of products in Greek supermarkets and respectively with France, England, Italy, Spain, Portugal, Germany and Romania.

This conclusion emerged from his repeated exposure Consumer Goods Retail Research Institute (IELKA) which presents the results of an organized price comparison survey (based on data from price comparison platforms in each country, but also on pricing from supermarket chains) on a typical basket of products of the household of the organized food retail trade (supermarket) in Greece in July-August 2024 and respectively in France, the United Kingdom, Spain, Italy, Portugal, Germany and Romania. The price comparison is made with and without the value of VAT, which differs in each country.

For the present analysis, prices were compared in a total of 42 product categories. These product sub-categories are examined from a significant sample of over 6,000 product prices and 44 different supermarket chains in the eight countries in total to calculate the average prices, with sampling from valid price comparison sites in Greece and abroad, but also from supermarket chains.

The IELKA data includes final prices of both branded products and private label products in each country. It is clarified that the prices refer only to supermarket chains and not to other points of sale.

The general conclusion that emerges from the above analysis is that the organized Greek food retail trade (supermarket) provides Greek consumers with access to products for their typical basket at lower prices on average which is the result of the organized effort of suppliers and retailers to price restraint in recent years.

Accuracy: What the price comparison showed

The comparison of average basket prices (table 1) shows that all four countries have a significantly more expensive average basket than Greece, 33% Germany, 25% France, 19% United Kingdom, 14% Italy, while more expensive by 3% Portugal, 5% Spain and Romania are about the same level as Greece.

The picture of the results changes significantly when we remove the relevant VAT per country to understand the real prices of supermarket products. Comparing the baskets in this case (figure 1 and table 1) shows that all seven countries have a more expensive average basket than Greece, Germany by 40%, France by 33%, the United Kingdom by 27%, Italy by 21%, Spain by 12%, Portugal by 5% and Romania by 5%. This is a result of the difference in the low VAT per country (this is the VAT referred to food and drinks). In Greece this VAT is 13%. VAT is significantly higher than the UK (0% or 5%) and France (10% and 5.5%), Spain (10% and 4%), Portugal (13% and 6%), Italy (5% and 4%), Germany (7%) and Romania (9%), but also most EU countries.

The main difference is that food that in Greece is subject to even the high VAT rate of 24% in the rest of the countries is subject to the low VAT rate, which is lower than the Greek rate of 6%, 5.5%, 4% or even 0 %. Few products are in the low VAT in Greece and the high in the other countries (eg baby wipes). It is noted that the effect of special consumption taxes (e.g. coffee) cannot be included in the above figures.

This trend, with minor fluctuations, has been consistent over the last 12 years that this research has been carried out by IELKA. The long-term price comparison with abroad shows that in recent years Greece has consistently had a cheaper standard basket than the compared countries with some variations which do not change the general conclusion of the analysis.

What factors affect prices?

It is noted that factors that should be taken into account when comparing prices between different countries are:

• The amount of VAT rates in each country
• Excise taxes in each country
• The amount of taxation in each country
• Agricultural and industrial production in each country
• The consumption habits in each country (e.g. the trend for packaged or non-packaged products, private label products, etc.)
• Weather conditions and natural disasters due to climate change
• The cost of energy
• The cost of fuel and general transport
• The salary-labor cost
• The distance of the country from the production centers of central Europe and the corresponding costs
• The complexity of the geography of each country (e.g. road network, islands etc.)
• Market size, purchasing power and corresponding economies of scale in product procurement
• The ratio between organized retail and small specialized points of sale
• The export-import balance in relation to food and raw materials for its manufacture
• The various production costs (energy, raw materials, wage costs, financial costs, bureaucracy)
• The productivity of industry and retail trade in each country
• The seasonality of demand and supply (e.g. due to tourism or weather conditions)

Which supermarkets were compared

The price data are calculated from well-known price observatories of the countries examined and supplemented with prices and for Greece in the primary data from prices in large supermarket chains. The criteria for selecting the categories in the basket is a combination of selecting the best-selling goods, corresponding used baskets for evaluation abroad, as well as common availability of product categories in the markets in the countries under consideration.

• Greece: Sklavenitis, AB, My Market, Masoutis, Market In
• United Kingdom: Morrisons, ASDA, Sainsbury’s, Coop, Ocado, TESCO
• Photos: Carrefour, Marcadona, Caprabo, Condis, Dia, Eroski, SoySuper. Alcampo
• Ιταλία: CosiComodo, emiDrive, Pim Spesa, Agora, Everli, HeyConad, easyCoop
• Portugal: Continente, Minipreco, Auchan, Spar
• Location: Monoprix Plus, Carrefour, Super U, Auchan, Aldi
• Germany: Edeka, Rewe, Kaufland, Netto, Tukwila
• Romania: Kaufland, Tommy, Spar, Konzum

  

Source: ot.gr