Cyprus retail sector satisfied with holiday sales, footfall

Supermarkets and toys dominate retail sales

Cyprus retail trade association secretary Marios Antoniou on Monday expressed satisfaction with both customer footfall and revenue during the holiday season.

Supermarkets and toy stores in particular thrived during this period, according to Antoniou.

“We can express our full satisfaction regarding both the footfall and turnover at supermarkets, shopping centres, high streets, and city centres,” Antoniou told the Cyprus News Agency (CNA).

“The past week has been exceptionally good for retail as a whole,” he added.

Moreover, he mentioned that supermarkets claimed the largest share of sales, but toy stores, particularly those selling classic board games, performed remarkably well.

“While gift sales of classic board games had been declining in recent years, this year we observed a shift, with a renewed interest from consumers,” he said.

The clothing and footwear sectors also showed strong performance, although Antoniou expects their peak to occur after the holidays with the start of winter sales.

Antoniou pointed out that there is no legal regulation on when sales periods should begin, leaving retailers free to choose.

“Based on previous years, we estimate that sales will start on January 3, this coming Friday,” he said.

He added that the supreme court had ruled any regulation of sales periods unconstitutional.

“We believe the market is free, and each retailer knows their capabilities,” Antoniou said.

“They are free to offer promotions whenever they see fit during the year, which ultimately benefits the consumer,” he added.

Antoniou also underlined the importance of “genuine discounts” and called for penalties against unfair or misleading practices.

Reflecting on 2024 as a whole, Antoniou reported a positive performance in both turnover value and volume.

“The increase in value was expected due to rising product prices, but what pleases us most is the growth in sales volume,” he said.

He attributed this growth to the impact of tourism and the spending power of foreign residents, including Russians, Ukrainians, and recently, Israelis.

Additionally, international interest in the retail sector is rising, with foreign chains entering the market and plans for new shopping centres in Limassol.

Elsewhere, Antoniou highlighted the sector’s significant role in Cyprus’ economy, contributing 15 per cent to GDP and employing 18 per cent of the workforce.

“The retail sector is second only to tourism in economic importance,” he said. “Decisions impacting this sector must be carefully considered.”

He stressed that “supermarkets remain the backbone of retail, generating over €2.3 billion in annual turnover”.

“The overall retail turnover exceeds €3 billion,” Antoniou said.

Antoniou also warned against “overconfidence in the face of global uncertainties”, including climate change, geopolitical tensions, and economic instability.

“Retail, like all sectors, is influenced by these factors,” said.

“However, stabilisation in prices, except for produce affected by climate change, is a hopeful sign,” he added.

Addressing the e-kalathi initiative, Antoniou said that the association believes that it “interferes with the market and may mislead consumers unless identical products are compared”.

“Any platform launched must be practical, thoroughly tested, and transparent,” he concluded.

Bars and restaurants see visitor levels steady at 80-100 per cent

Meanwhile, visitor turnout at bars and restaurants across Cyprus during the Christmas season remained consistent with last year, ranging between 80 and 100 per cent.

“Visitors aged over 50 favoured taverns, as well as music-and-dance venues, while those under 50 enjoyed late-night entertainment at leisure centres,” said Neophytos Thrasyvoulou, president of the Federation of Leisure Centre Owners (Osika).

The festive season also saw significant attendance at Christmas villages, which were popular among both local and foreign visitors.

Thrasyvoulou suggested expanding such initiatives by organising Easter villages to revive and celebrate Cypriot traditions.

“This would benefit locals and tourists alike and, along with festivals, could enhance the country’s entertainment offerings,” he said.

In Paphos, bars and restaurants who enjoyed the highest share of business activity were located in the city’s commercial hub and Pano Paphos.

Across Cyprus, Thrasyvoulou said, approximately 3,500 registered leisure centres are in operation.