The supermarket battle goes digital: From leaflets to apps

From price increases of more than 20% and market concentration to e-kalathi, digital transition and consumers now visiting three different supermarkets a month, Economy Today maps the changes reshaping food retail in Cyprus.

From 2020 to 2025, prices in the “Food and Non-Alcoholic Beverages” category increased cumulatively by around 20%, according to data from the Statistical Service. During the same period, major supermarket chains strengthened their presence in the market, digital tools became part of consumers’ daily lives and the weekly grocery shop took on a different character.

The past six years have perhaps been the most disruptive period experienced by organised food retail in Cyprus. The pandemic, supply chain disruptions, the energy crisis that followed Russia’s invasion of Ukraine, inflationary pressures and the acceleration of the digital transition created a completely different environment for both supermarkets and households.

Most of the price increases were recorded between 2022 and 2024, when higher energy costs, transport expenses and international disruptions were gradually passed on to supermarket shelves. Despite the subsequent slowdown in inflation, prices did not return to 2020 levels, while the latest geopolitical developments in the Middle East are raising concerns about new pressures on costs and supply chains.

These changes have left a strong mark on shopping habits. Comparing prices has become a daily practice, promotions have gained greater importance, apps and digital tools have become part of the shopping process, and consumers now appear less loyal to specific stores or products.

At the same time, the supermarket landscape is changing. Major chains are expanding, the market is becoming more concentrated, technology investments are accelerating and competition is moving beyond price into areas such as service, convenience, loyalty programmes and the digital experience.

The e-kalathi platform is also part of this changing environment. It has added another price-comparison tool and opened a new discussion around transparency, competition and consumer protection.

Economy Today maps the changes that have taken place in the supermarket market from 2020 to today, examining how rising costs, technology, acquisitions and new consumer habits have shaped the new “battle for the basket”.

The price shock

The period from 2020 to 2025 was characterised by sharp increases in food prices and basic consumer goods.

According to Statistical Service data, the “Food and Non-Alcoholic Beverages” category recorded a cumulative increase of more than 20% over five years, with the relevant price index rising from 83.14 points in 2020 to 100 points in 2025.

The greatest pressure was recorded between 2022 and 2024. Prices increased by 8.89% in 2022, 7.74% in 2023 and 3.34% in 2024. A marginal decrease of 0.41% was recorded in 2025, without reversing the picture that had emerged in previous years, while the situation after March 2026 has reversed due to the crisis in the Middle East.

“Consumers did not notice any reduction in their overall household budget for the simple reason that prices did not fall,” Marios Drousiotis, president of the Cyprus Consumers Association, told Economy Today.

Data presented by RAI Consultants and provided to Economy Today also records changes in the way consumers shop. According to the survey, the average consumer now visits three different supermarkets each month, while 54% use apps and digital tools to find information about prices and promotions. The corresponding figure for traditional leaflets has fallen to 23%.

Rising costs change the shopping basket

Pressure on household incomes is now also reflected in shopping habits. “Today we see watermelons being sold by the piece, consumers ordering meat by the number of pieces, for example three chops instead of one kilogram, and buying fruit and vegetables by the piece rather than by weight,” said Drousiotis.

According to him, the pandemic, rising prices and the growth of online shopping have substantially affected consumer behaviour, with shoppers now paying closer attention to quantities, promotions and price comparisons.

Drousiotis also referred to the phenomenon of reducing product quantities without a corresponding reduction in price, known as shrinkflation. As he noted, products that were previously sold in one-kilogram packages are now available in smaller quantities, making it even more important to compare the final value of each purchase.

The supermarket map is changing

Beyond changes in consumer habits, the past five years have also brought significant changes to the structure of the market itself.

According to data from the RAI Retail Census 2025, provided by RAI Consultants to Economy Today, almost 3,000 retail outlets and more than 5,600 HoReCa outlets have been recorded across Cyprus. The data shows a steady strengthening of major organised supermarket chains between 2020 and 2025.

Alphamega increased its network from 16 to 21 stores, Lidl from 18 to 22, MAS from 42 to 54 and SYPAL from 45 to 50. Metro increased its number of stores from six to seven, while Ioannides rose from two to three. At the same time, Sklavenitis expanded its network from 18 to 27 stores following its acquisition of the Papantoniou chain, which had nine stores in 2020 and no longer appears as a separate player in the 2025 survey.

According to RAI’s comments to Economy Today, major chains continue to increase their market share at the expense of unorganised outlets, while supermarkets and hypermarkets are strengthening their position against traditional grocery stores, convenience stores and kiosks.

The same trend is reflected in retail concentration figures. According to RAI’s presentation at the Retail Forum 2025, the three largest retailers now control 34% of the market, up from 25% previously. The share of the five largest retailers increased from 34% to 49%, while the 10 largest players now account for 65% of the market, compared with 49% previously.

Concentration and competition

Michalis Panagides, president of the Pancyprian Supermarket Association, estimates that the concentration trend will continue in the coming years.

“The Cypriot market is relatively small in size and this in itself creates pressure for economies of scale,” he said. As he noted, continued investment in technology, storage facilities, logistics, e-commerce and store upgrades increases operating costs and makes it more difficult for smaller players to survive.

On the other hand, both supermarket representatives and the Consumer Protection Service argue that market concentration does not necessarily mean reduced competition.

Konstantinos Karayiorgis said the market is characterised by strong competition between a large number of chains, with 25 businesses currently participating in the e-kalathi platform, in addition to smaller supermarkets operating in the market.

e-kalathi: One tool, three perspectives

The e-kalathi application is one of the most significant interventions in the food retail market in recent years, aiming to make it easier for consumers to compare supermarket prices.

Retail businesses with an annual turnover of more than €5 million participate in the platform. According to the file examined by Economy Today, 73 businesses and chains are recorded, representing 189 outlets across Cyprus. The platform includes major nationwide supermarket chains, cooperative networks, local chains, discount stores and newer retail and e-commerce businesses.

The application allows users to compare prices for 476 basic products. According to the Consumer Protection Service, more than 12,000 downloads of the app have been recorded to date, while monthly views exceed 35,000.

The deputy director of the Consumer Protection Service, Konstantinos Karayiorgis, described e-kalathi as a “digital weapon in the hands of consumers”, noting that it allows direct price comparisons between supermarkets.

According to the service’s data, the cost of a common basket of products can differ by more than 10% between the cheapest and most expensive supermarket.

The Cyprus Consumers Association takes a different view. Its president, Marios Drousiotis, notes that the platform includes around 478 products, while a large supermarket carries between 15,000 and 20,000 product lines.

“The number of 478 products cannot be considered sufficient to make a difference and help consumers to the extent they would like,” he said.

The Consumers Association has also raised issues concerning the operation of the platform and large price differences observed in some cases between supermarkets.

“The same product cannot have a price difference of 50%-70% at one supermarket compared with the average price at other supermarkets,” Drousiotis said.

From the supermarkets’ side, Pancyprian Supermarket Association president Michalis Panagides considers e-kalathi another source of information for consumers, without changing the fundamental characteristics of competition.

As he said, the market was competitive even before the platform was introduced, while the consumer’s final choice is not determined solely by price.

“Price alone does not reflect the overall value a consumer receives from a supermarket,” he said, referring to factors such as quality, freshness, product variety, availability, service and the overall shopping experience.

From leaflets to apps and three supermarkets a month

The shift towards digital tools is now clearly visible in the shopping habits of Cypriot consumers. According to RAI data presented at the Retail Forum 2025 and provided to Economy Today, 54% of consumers use apps and digital tools to find information about prices and promotions. By contrast, only 23% now rely on traditional leaflets.

The same survey records another notable finding: the average consumer visits three different supermarkets each month. This reflects a market where price comparisons, promotions and the search for better value have become part of everyday life.

The deputy director of the Consumer Protection Service, Konstantinos Karayiorgis, said convenience is now a key factor in consumers’ choices. For his part, Pancyprian Supermarket Association president Michalis Panagides said online orders, promotional apps, digital payments and self-checkouts are now part of the daily operations of most major chains.

According to RAI, e-commerce continues to grow in the food and coffee categories, although it remains at relatively low levels compared with other retail markets. Physical stores remain the main shopping channel for the majority of consumers, even though the way they find information, compare prices and make choices has changed significantly in recent years.

The five consumer tribes

According to the data provided by RAI, there is no single Cypriot consumer profile. Instead, there are different “tribes” of shopping behaviour that make up the overall profile of the Cypriot consumer.

Active Economisers, who account for 18%, focus mainly on price and promotions. These consumers pay closer attention to the shelves, compare prices and seek immediate financial benefits.

Young & Restless, also accounting for 18%, have a different profile. They seek choice, experience, technology and communication. For them, the app, speed, online services and easy access are part of the shopping experience.

Brand Oriented Swingers, at 28%, move between brand, price and freshness. They do not easily abandon brands, but they are influenced by promotions and available choices.

Family Driven Traditionals, at 20%, place emphasis on family, promotions and product choice, while Comfort Driven Traditionals, at 13%, mainly seek freshness, convenience and a more stable relationship with their supermarket.

This categorisation essentially shows that different groups of consumers assess price, quality, brand, freshness and the overall shopping experience in different ways.

Private label and Cyprus’ particular profile

In several European markets, the period of high inflation was accompanied by a significant increase in private-label products. In Cyprus, the data shows a different picture.

According to RAI data provided to Economy Today, private-label products account for 7.5% of supermarket sales, a percentage significantly lower than in other European markets.

Cyprus Consumers Association president Marios Drousiotis estimates that rising prices have increased interest in private-label products, as some consumers view them as a cheaper option. However, he questions whether the price difference is justified when the quantity and quality of certain products are taken into account.

For his part, Pancyprian Supermarket Association president Michalis Panagides said chains have invested significantly in improving the quality of private-label products, with some categories now competing with branded products.

Despite the inflationary pressures of recent years, the Cypriot market remains more focused on branded products than other European countries, a trend also reflected in the relatively limited share of private-label products.

What comes next

The changes recorded in the supermarket market are not limited to prices or consumer habits. They concern the overall structure and operation of organised food retail.

Businesses are having to manage higher operating costs, investments in technology and logistics, increased energy and transport expenses, as well as the ongoing challenge of finding staff. At the same time, uncertainty caused by geopolitical developments in the Middle East is a reminder that inflationary pressures and supply chain disruptions are not definitively a thing of the past.

The data compiled by Economy Today illustrates the scale of the changes that have taken place in just a few years. Food prices increased cumulatively by more than 20% between 2020 and 2025. The three largest retailers increased their market share from 25% to 34%, while the 10 largest players now control 65% of the market. Some 54% of consumers use apps and digital tools to find information about prices and promotions, while the average consumer visits three different supermarkets each month.

Five years after the pandemic, the “battle for the basket” is taking place in a market that is more concentrated, more digital and more competitive than the Cyprus of 2019. And if the data from this mapping exercise shows anything, it is that the consumer of 2026 has very little in common with the consumer of the pre-pandemic era.

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