An ambitious government-backed digital initiative designed to empower Cypriot shoppers and foster grocery price competition has been deemed largely ineffective by consumer advocates. An evaluation conducted by the Cyprus Consumers' Association reveals that the e-kalathi online price comparison platform, operational for nearly half a year, has not succeeded in its primary mission of driving down supermarket costs. Instead, the analysis suggests the observed narrowing of price differentials between retailers stems from less expensive chains raising their prices, rather than pricier outlets becoming more competitive.
Launched with considerable fanfare earlier this year, the e-kalathi platform was conceived as a technological solution to promote market transparency. By allowing consumers to digitally compare the costs of approximately 200 staple products across major supermarket chains, policymakers hoped to stimulate a race to the bottom on pricing, thereby alleviating pressure on household budgets. The platform represented a direct intervention by authorities seeking to mitigate the impact of persistent inflation on essential goods.
However, the Association's scrutiny, drawing on data from July, September, and November of this year, paints a disappointing picture. While the price gap for a standard basket of goods between the most and least expensive retailers has indeed contracted—from 13% in July to just 5.8% in November—the underlying dynamics are troubling. The Association asserts that this convergence "seems to be owed more to the increase of the prices of the supermarket with the lowest total cost and not to the reduction of the prices of the supermarket with the highest total cost." In essence, the floor has risen, not the ceiling lowered.
Further undermining the platform's utility are significant operational limitations. Critics point to a constrained product range, alleging that large supermarket groups list only a fraction of their total inventory, potentially obscuring true overall price positioning. Compounding this issue is a recent and confusing development noted since November: some retailers have begun implementing disparate pricing for identical items across different branches of their own chains. This practice introduces additional complexity for consumers attempting to make informed choices based on the platform's data. During the same period, the analysis recorded a mixed performance across categories, with personal care items seeing an average increase of 2.5%, while some bakery goods experienced a 3.5% decrease.
The Consumers' Association has delivered a blunt verdict, stating that the e-kalathi, after six months, to a large extent “failed to achieve its objectives.” This assessment challenges the narrative of the platform as an effective market corrective. While it remains a publicly available resource for the price-conscious, its role as a catalyst for broad-based price competition appears diminished. The episode highlights the complexities of regulating retail markets, where digital transparency tools can be circumvented by strategic pricing adjustments and limited data scope. The findings are likely to prompt scrutiny of the platform's design and enforcement, as well as broader discussions about alternative measures to ensure genuine competition in Cyprus's grocery sector.