The impact of the Code of Conduct on Promotions and Discounts, which came into effect in March 2025, has recently been at the center of public debate. The Code, as defined in the relevant Ministerial Decision, aims to protect consumers from misleading practices and artificial discounts.
But “How does it affect the industry and retail?” and “Does it enhance or diminish the effectiveness of promotional investments?”
NielsenIQ, through its “Promotional Effectiveness” analysis, investigated the measure’s impact using extensive primary sales data at the weekly, store, and product code levels. The study compares the period before and after the implementation of the Code across all supermarkets in Greece.
According to the overall findings, promotional intensity for fast-moving consumer goods (FMCG) showed a slight decline of 1.6 percentage points (pp), settling at 32.2%. At the same time, the effectiveness of promotional activities—as defined by the additional quantity sold due to discounts—recorded a marginal increase of 0.7 pp, while the volume of additional sales rose by 3.7%.
The picture varies by store type. In hypermarkets, where the intensity of promotions decreased by 1.4 percentage points, the most significant increase in effectiveness was recorded (+2.9 pp). In contrast, in mid-sized stores (400–1,000 sq. m.), which saw the largest decrease in promotional intensity (-1.9 pp), effectiveness remained unchanged.
At the product category level, snacks, cookies, and chocolate recorded the highest positive change in effectiveness (+5.6 pp), while the homecare category recorded the largest decline (-7.3 pp). It is noteworthy that the intensity of promotions increased in the first category, while it decreased in the second.
An analysis of price elasticities, which reflect consumer response to price changes, showed a 2.6% increase between the two periods. At the store level, the greatest increase in promotional elasticity was recorded in hypermarkets (+1.8%), while at the category level, alcoholic beverages recorded the largest increase (+6.3%).
As Anastasis Panousopoulos, Revenue Growth Management Lead CEE & SEE for NielsenIQ, stated: “When promotional campaigns become more distinct in terms of their duration and communication, they enhance their recognition and maximize return on investment.”
It is worth noting that the same promotional mechanisms (with an average discount of 15%) led, following the implementation of the Code, to an additional 1.2% increase in sales volume .
It should be noted here that the industry did not follow a uniform strategy for adapting to the new Code. Some companies limited the depth of discounts , others adjusted their frequency, while some adopted consistently low-price strategies (EDLP).
Overall, however, the findings indicate that, despite an initial marginal slowdown in volume growth, the implementation of the Code contributed to the rationalization of the majority of promotional investments in the FMCG sector.