THE ISLAND’S largest retail group said yesterday it would reduce its prices in an effort to ease fears that the island’s adoption of the euro in January 2008 would prompt a bout of profiteering.
The Shacolas Group, which imports items ranging from fork lifts to face creams, said price reductions would be about one per cent across the board when converted to euros next year.
“We have decided that our prices for all our products and services offered by the Shacolas Group of companies, in all its shops and department shops all over Cyprus, including shops and restaurants at Larnaca and Paphos airports, will be rounded down, by around one per cent. In other words in practice prices will be lower than the price of the conversion rate, which will apply to all products and especially products of wide consumption,” company executive chairman Nicos Shacolas said.
Speaking at a news conference to announce the move, Shacolas gave examples of drinks foodstuffs, articles of clothing, and coffee shop goods at its Ermes stores that would be reduced.
Electrical products including televisions, steam irons and mobile phones available from the Cyprus Trading Corporation group were also headed for price cuts, he said.
The group’s announcement comes in the wake of opinion polls that about two-thirds of Cypriots are worried about price increases from the transition to the euro from the pound next year. Surveys have also suggested about half of the islanders are against euro adoption.
“Other businesses might also follow suit, and it would be a disincentive to any enterprise to round prices up,” Shacolas said.
“We would want to encourage other businesses to follow this example, to allay some concerns which have been expressed about the changeover,” Finance Minister Michael Sarris added.
Authorities want companies to enter voluntary fair pricing agreements about the changeover as part of a campaign to swing public sentiment.
During yesterday’s news conference, Shacolas said that based on its estimates for 2007, the group expected a turnover of £170 million or 291 million euros in its retail trade.
He said over 10 million visitors and buyers were expected at its stores throughout the year, excluding the retail shops, restaurants and coffee shops at both airports, which the group operates, and the Athalassa ‘Mall of Cyprus’ and ‘Engomi Market’ that will both open in Nicosia by the end of the year.
“Including these, we expect the total turnover to near £270 million or 463 million euros,” he said.
