June 19, 2024

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Aristotles Panteliadis (METRO): Why we will not see a significant price drop – Economic Article

METRO Group President, Aristotelis Panteliadis, spoke about a decline in real food inflation in the last two months based on the company’s measurements, in the context of a media meeting with journalists, saying that ELSTAT measures inflation in a way that does not reflect real purchasing power.

“In the last two months we have had negative inflation approaching -1%,” He said characteristically. This difference, he said, is due, firstly, to the fact that Elstat’s measurements do not capture offers and promotions, and secondly to the inability of the Statistical Authority to measure changes in the weight of the products that make up the household basket.

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He explained that when the consumer buying mix changes, inflation also changes.

He even gave the example of olive oil, which, due to a sharp increase in its price, now has less weight in the household basket, as consumers turn to similar products of lower value, such as seed oil, in order to cover the costs of living. Their needs.

However, Mr Panteliadis, who controls a network of 227 supermarkets and 49 wholesale stores, made clear that he is not claiming prices have fallen, on the contrary, he says prices have stopped rising. However, he appeared generally pessimistic about the potential for a significant price escalation, noting that almost all cost factors appear to remain at higher levels than in the past.

Rather, he referred to the case of cocoa, whose price remains at high levels despite the decline in escalation from the record levels recorded in the previous period.

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Multinational and parallel imports

Asked to comment on the Prime Minister’s letter to the Commission regarding multinational companies and the geographical restrictions they seem to place, Mr. Panteliadis stated categorically that there is no condition and no agreement preventing supermarkets from proceeding with parallel imports. “We don’t have any restrictions from our suppliers. I imagine there are no restrictions in any other chain either. He said characteristically.

Commenting on the huge fine imposed on Mondelez, he stressed that the case does not concern Greece and that the problem lies at the “source”, i.e. production and wholesalers, and not at the final stage, i.e. the customer.

A snapshot of Aristotle Panteliadis’ presentation in the context of the METRO Group’s presentation to journalists in the EBEA hall

However, he realized that there were some practical limitations, such as different packaging and lack of labels in Greek, which prevent the company from continuing direct imports from abroad. Because, quite simply, these products are not acceptable to the Greek consumer.

He was also quick to add that some interventions could be made to facilitate trade within the community, in the interest of halting price escalation.

Cheaper than Europe

Mr Panteliadis, who retains the position of president of the Greek Supermarkets Association (ESE), also responded to criticism that prices in Greece are more expensive than the rest of Europe, saying he did not share that view. “Some products may be cheaper in Europe, but not all,” he stressed, stressing that it is not the case that multinational companies charge higher prices here compared to other European markets.

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The average price, if offers are included, is higher in Europe than in Greece, he said.

Reducing VAT will reduce prices

Mr Panteliadis also defended the government’s refusal to discuss reducing VAT on food as a solution, noting that VAT de-escalation would lead to lower prices. At the same time, he rejected Hatzidakis’ claims that companies would make the difference. “I am absolute about this. The VAT reduction will be postponed.” Write.

To remove difficult and extraneous measures

Regarding the measures taken by the government to limit punctuality, the Chairman of the Administration and Chairman of the Shareholders of Metro Company indicated that supermarkets operate in a restricted environment, with a total of 8 interventions in force, some of which are four years old, such as the maximum gross profit margin.

He particularly pointed to the permanent price reduction measure of at least 5%, which expires at the end of May, indicating that he hoped that as things improved, some “difficult and strange measures” would be completed. He also warned that some measures that may have worked initially may work negatively in the long term. “We are skeptical about the measures… and we believe that they are measures that do not benefit anyone….” Features mentioned.

Rather, he considers that gross profit margin “harms” competition because it reduces the competitive performance of the market, saying that supermarkets “We eat firewood through no fault of our own, and our efforts have no positive impact on society. Everyone thinks we are raising prices and profits.”

I support Spiros Theodoropoulos for BSE

The shareholder and managing leader of METRO Group did not refuse to take a position on the SEB elections held on June 18, clearly stating that he supports Spyros Theodoropoulos.

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“I am impressed,” he said, by his personal knowledge and collaboration with Mr. Theodoropoulos, saying he considers him capable but also fair. “He is a very honest person that I admire, and he believes that the right thing should be done no matter who benefits from it. This is something Mr. Theodoropoulos has been keen to maintain throughout his career.

“I think he is the right person to head the association,” Mr. Panteliadis noted and admitted that because of his work he did not know the lady’s profession. Iulias Tseti therefore cannot express an opinion whether she is fit or unsuitable to head BSE.

In conclusion, he said that he too would be a candidate for the association as an ordinary member.