Newsroom
Supermarkets in Cyprus are thriving, recording strong turnover in 2024 and again this year, while restaurants and catering businesses are struggling with steep losses.
According to the Cyprus Supermarket Association, as reported by Kathimerini's Dorita Yiannakou, supermarket turnover hit €2.3 billion in 2024, up 6% from the year before, and the trend continues upward. From January to July this year, large stores over 500 square meters reported a 4% increase compared to the same period last year. Industry insiders say the shift comes from more Cypriots eating at home instead of dining out, boosting retail food sales.
That contrast is stark with the catering sector, where owners report a 30% drop in turnover during the summer months, except for a brief bump in August thanks to tourists. Many in the industry say the future looks bleak, despite new legislation approved by the Cabinet.
Eurostat data also highlight Cyprus’ strong retail performance, showing the island had the highest increase in retail trade turnover in the EU. Retail sales in Cyprus rose 8.5% in July compared with an EU average of 2.4%. Growth was strongest in food, beverages, and tobacco sales at specialty stores, which jumped 15.3%.
Still, supermarket operators warn of serious challenges. Rising wage demands, a shortage of skilled workers, high operating costs like energy and rent, and fierce competition from rival chains are cutting into profits. Shoppers are also increasingly seeking cheaper options, such as private-label goods and promotional offers, which pressures margins even further.
Despite these hurdles, supermarkets remain one of the few bright spots in Cyprus’ retail sector, standing in sharp contrast to restaurants and cafés still fighting to stay afloat.
