Retailers to respond to EGP appreciation with promotions; price reductions await

Retailers will respond to the appreciation of the EGP with more promotions and discounts rather than by reducing prices on the shelves, Al Borsa says. Spinneys hypermarket chain CEO Mohanad Adly says suppliers are rolling out “special offers” as a prelude to more permanent price reductions following calls to reduce prices at the same pace they were increased at in response to the EGP devaluation. A dairy producer says the price reductions will be proportional to the appreciation of the EGP as, according to him, most companies priced their production at an exchange rate of EGP 17.5 per USD 1 in order to maintain their market shares. Separately, a government source noted that the Supply Ministry is considering increasing the allotment of goods available to each ration card holder.