Retailers report that the ongoing Middle East conflict has led to a decline in tourist arrivals, negatively impacting sales. Kakha Khazaradze, Chairman of the Supervisory Board at ICR Group, told BMG that sales in February–March fell by 5–6% below plan, largely due to fewer tourists from the Middle East and Asian markets.
Khazaradze noted that global developments pose additional challenges for the retail sector. If the conflict and related logistical issues persist, the cost of imported goods could rise, further affecting prices in Georgia.
He explained that February–March was a relatively passive period for retail, with sales below planned targets but similar to last year. Weather also delayed the spring season, contributing to the slowdown.
Finally, Khazaradze warned that rising fuel costs could increase the price of imported goods, which make up 70–80% of Georgia’s retail products, potentially feeding into broader inflation if supply chain disruptions continue.
