Today the Sklavenitis supermarket chain officially took over the Marinopoulos supermarket chain. The sad store outside of town, seemingly abandoned by suppliers and customers, is still there and some employees seem to go in everyday. Truthfully, since Marinopoulos went bust, the place gives me the creeps and I haven’t been inside for a year. For the sake of the workers, I hope that the restructuring of the company can allow the store to be fully operating soon – meaning that they have things inside to sell.
It seemed like an bad dream economics lesson. Something happened at the executive level (over expansion ?) which left the company without operating revenue. Little by little suppliers bailed out as they were not being paid. The Skopelos store literally shrank as the shelves became emptier and emptier. And naturally customers stopped coming – because there was little to buy. So revenue continued to shrink (using the Skopelos store as an example). A classic downward spiral.
The restructuring and the takeover by Sklavenitis was announced over a year ago and finally there is a plan to keep stores open and employees working. Sklavenitis says that they will reopen stores gradually, beginning with stores in areas where Sklavenitis already has a presence (i.e. not Skopelos).
We will have to wait and see. Expect some discounts as the stores try to gain back the customers they have lost.