Shacolas Group pledge to round-down euro prices in Cyprus

The Shacolas Group of Companies have pledged to round-down euro prices by up to 1% when the euro becomes official tender on January 1, 2008, sending a strong message to the Cypriot consumer concerned that businessess will proceed with rampant price hikes when the euro is introduced.

NKS Group Executive Chairman Nicos Shacolas made the pledge on behalf of all his group companies during a press conference held on Friday in Nicosia, which was attended by Finance Minister Michalis Sarris, Central Bank officials and MPs.

“Prices quoted in Cyprus pounds will be converted at exactly the official conversion rate and then we shall proceed with rounding down prices by up to 1% into euro,” said Shacolas.

Shacolas added that all the group companies that include CTC, Ermes Department Stores, Debenhams, cafes and restaurants at Larnaca and Paphos airports and tens of retail outlets including Germanos, OTEnet, Super Home DIY, Zako, Domex, Scandia, cars, trucks and more with a combined estimated CYP 270 mln or EUR 463 mln annual volume forecast for 2007, will be implementing the measure.

“We expect 10 mln visits and sales at all our retail outlets and we are sure that our gesture will be appreciated by the Cypriot public,” said Shacolas.

Finance Minister Michalis Sarris welcomed the pledge made by Shacolas, describing it as “significant”, which will go a long way to convince other business establishments to follow.

Sarris said the government is counting on a number of measures to address wide-spread fears that there will be rampant prices hikes in the run-up and after euro conversion.

Dual pricing is set to start from September and run until June 2008. Companies will be called to voluntarily follow a fair-invoicing policy, while euro observers and the consumer association will be called to monitor pricing and report offenders.

Kyriakos Zyngas, Senior Manager at the Central Bank who addressed the press conference on behalf of Governor Athanasios Orphanides, also praised the initiative of the Shacolas Group of companies and expressed the hope that more will follow.