Breaking news

E-Kalathi’s Discount Dilemma: Genuine Savings Or Mere Illusion?

Conceived as a tool to reduce grocery prices, e-kalathi has come under intense scrutiny as its practical utility diverges from its original promise. Despite its objective to deliver tangible savings to consumers, recent analyses reveal that several supermarket chains may be leveraging the platform more for advertising appeal than for providing real discounts.

Misleading Price Comparisons

Recent findings by the Cyprus Consumers Association indicate that even seven months after its launch in June 2025, e-kalathi has fallen short in meeting its stated goals. The data suggest that the platform may create a distorted picture of pricing, misleading consumers to believe one chain offers the lowest prices overall. In practice, the display of selectively discounted items can lead to erroneous perceptions about a supermarket’s overall pricing structure.

Flavor-Specific Price Discrepancies

One example involves a children’s yogurt dessert. A strawberry flavor appears on e-kalathi at a lower price, while other flavors of the same product are not listed. This can suggest broader savings even though the discount applies only to one variant. Notably, only a few retailers, such as Athinaeitis and Ioannidis, maintain uniform pricing across all variants, bolstering customer trust through consistent pricing practices.

Promotion Compliance Under The Microscope

Concerns also extend to promotional campaigns. According to the Cyprus Consumers Association, offers such as “1+1 free” are sometimes presented in a way that may not clearly reflect the actual unit price. Under current regulations, if a product is listed at €3, the promotional unit price should not exceed that amount. In practice, some retailers appear to adjust list prices without immediately updating or removing the promotion, which can create confusion for shoppers.

Cases such as detergents incorrectly labeled under “1+1 free” promotions highlight broader questions about price transparency. The discussion around e-kalathi’s operation has therefore focused on the need for clearer pricing rules and more consistent promotional practices among supermarkets.

Mercedes-Benz Posts Higher Profit Despite China Slowdown

Mercedes-Benz reported stronger-than-expected second-quarter results, lifting its shares on Tuesday despite mounting pressure from Chinese automakers and a weaker outlook for sales and revenue.

The earnings provided a boost for Europe’s auto sector, where manufacturers continue to grapple with tariffs, softer demand and intensifying competition from Chinese rivals. Volkswagen, Mercedes-Benz and BMW have all accelerated restructuring efforts in response.

Cost Discipline Lifts Quarterly Profit

Mercedes-Benz shares rose as much as 5.9% following the results before trimming gains to trade 3.5% higher by 1118 GMT. The company reaffirmed its profit margin guidance for its core passenger car business after reporting an adjusted return on sales of 4.0% for the second quarter, above market expectations and within its 3% to 5% target range.

“In an environment where some automakers are ringing alarm bells on their competitive positioning, Mercedes delivered a clear and confident message,” Morningstar analyst Rella Suskin said.

Second-quarter operating profit increased 22% to €1.5 billion ($1.7 billion), despite a 3% decline in revenue. Lower administrative and research and development costs, together with strong performances from the financial services and vans divisions, supported earnings, while the results also included a €131 million gain related to the planned sale of leasing subsidiary Athlon.

China Remains The Key Pressure Point

Despite stronger profitability, Mercedes continues to face a challenging market environment. Sales in China fell 30% during the second quarter, prompting the company to abandon earlier expectations for stable car sales and group revenue. It now expects both to decline slightly from a year earlier.

BMW also lowered its outlook in June following a deeper-than-expected slowdown in China, highlighting the pressure facing Germany’s premium carmakers. At the same time, Mercedes said Chinese manufacturers are increasingly expanding into European markets, although Chief Executive Ola Kaellenius said their focus remains on higher-volume segments rather than the premium market.

“But that is not a reason to sit back and be relaxed,” he said.

Manufacturing Shift Continues

Mercedes is also reshaping its manufacturing footprint. The company said its German factories will undergo a more aggressive push toward leaner production, although it declined to provide further details while talks with labour representatives continue. Production is also being expanded in lower-cost Eastern European locations, including Hungary, where the company is increasing capacity at its Kecskemet plant, as well as in Poland.

Chief Financial Officer Harald Wilhelm said the full-year margin for the passenger car division is expected to come in at the lower end of the company’s guidance range, reflecting a higher share of electric vehicle sales in Europe, which remain more expensive to produce and continue to weigh on profitability.

“We must continue to work flat out to reduce costs so that we can remain competitive on the prices of our products,” Kaellenius said.

The Future Forbes Realty Global Properties
eCredo
Uol
Aretilaw firm

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter