Supermarkets expect no goods shortages as the Ukraine war has not created dents in Cyprus’ supply chain, while competition is keeping prices in check.
The executive secretary of the Pancyprian Supermarkets Association, Andreas Hadjiadamou, said the supply chain operates normally.
However, the international food crisis concerning raw materials and cereals is ‘a different matter’.
He argued that prices had been kept in check, as “the supermarket sector is the only one where competition operates smoothly”.
“This allows the consumer to enjoy still reasonable prices that are not as high as they should be, considering the increase in supply charges and other continuous increases that supermarkets have had to face in recent months,” said Hadjiadamou.
“If it were not for competition, prices of goods on supermarket shelves would have been double, or even triple.”
Hadjiadamou said that despite the uncertainty created by the war in Ukraine, consumer habits have not changed despite concern over inflation.
He believes Cypriots’ spending habits have changed since the banking crisis of 2013, with consumers making more frequent stops at a supermarket but carrying a ‘smaller basket’.
“Since 2013, consumers have become more selective, browsing for bargains, and choosing the most inexpensive options”.
He argued that supermarkets have proven to be resilient in crises, having been completely modernised, with small stores absorbed by larger chains.
“Retail is now much better structured, with businesses having built international collaborations, acquiring expertise”.
Retailers do retain some concern over the cost of energy.
“The future is bright because the right professionals are left in the industry”.