The ongoing conflict in the Red Sea region is creating difficulties for Greece’s retail chains, who depend on the safe and timely transport of goods from China through the Suez Canal, and is forcing them to turn to Europe for alternative sources of supply.
The crisis in the region has driven up the price of goods from Asia, as cargo ships seek to avoid the dangerous Suez Canal and make the round of the Horn of Africa, increasing both the cost of delivery and time.
According to reports at OT, Kotsovolos is negotiating with various factories in Europe and Turkey to find ways to cooperate and source products closer to home. Some locations that it has in its sights are the Czech Republic, Slovakia, Romania, Poland and Turkey, which are all able to cover the retail chain’s needs of white appliances.
A source at Kotsovolos told OT that Chinese funds own quite a few factories in Europe now and are able to cover demand, pointed out that Turkey is also a good option for appliances.
Jumbo also announced that it will look to source in the region, but says that local sources can in no way replace Asia, which is “the world’s factory.” The company added that it has already stopped importing product codes that would lead to higher costs for the company that they would eventually have to pass on to customers.
