Retail is in a phase of dynamic transition both internationally and in Cyprus, with the central element being the leading role of technology, digital tools and artificial intelligence, the CEO of Alphamega Hypermarkets, George Theodotou has emphasised.
In an interview with InBusinessNews as part of the IN Business Forecasting 2026 series, he points out that the trends recorded in 2025 will continue with greater intensity in 2026, including the massive shift to digital services and e-commerce, which is now a stable and constantly growing sales channel, while also adding that investments in the retail sector, mainly in the direction of technology and automation, are increasing.
Regarding development and expansion plans for 2026, Theodotou explains that Alphamega Hypermarkets, the largest and fastest growing supermarket chain in Cyprus, will proceed in the same direction next year, aiming for further development, in order to be next to every consumer, in as many areas of Cyprus as possible, with an emphasis on innovation, digitalisation, convenience, quality and variety in the product offering.
The prospect of partnerships and strengthening its presence is on the horizon and on the agenda of the supermarket chain, George Theodotou also points out, underlining that in the retail sector, the trend of acquisitions and mergers has begun to appear, especially in services related to online delivery.
The recent acquisition of Foody Express by Alphamega Hypermarkets, he adds, is a strategic move in this direction.
How do you think the Cypriot economy will perform in the new year and what are its prospects?
The Cypriot economy is entering 2026 with positive indications and prospects, but at the same time, caution is required. Forecasts converge on a growth rate that is expected to remain stable with an upward trend, despite the volatile international environment.
The Commission has revised its estimate for 2025 upwards to 3.4% from 3.0% and for 2026 to 2.6% from 2.5%. Factors such as the normalisation of inflationary pressures, the gradual de-escalation of interest rates and the strengthening of domestic consumption create a relative optimism. However, the challenges - exogenous and internal - remain, so there can be no complacency. I remain optimistic that, with fiscal commitment and targeted policies, the economy of Cyprus can maintain a path of steady progress and growth, while capitalising on its strong human potential and remaining an attractive investment destination.
What do you consider to be the biggest risks and how can they be addressed?
Geopolitical instability in the wider Mediterranean and Eastern Europe region remains a significant and uncertain factor for the coming year. Combined with these, and the looming tension in Europe, energy costs, transport and stability are clearly affected. This creates an open field of risks and turbulence for the European and consequently the Cypriot economy.
Domestically, the lack of sufficient labour, and high operating costs, remain the most pressing challenges for the retail and hospitality sectors. Coordinated interventions from the State are needed, both for faster and more flexible licensing of foreign labour, and for the establishment of measures to offset the energy burden.
Finally, it is critical to continue the transition towards a more digital, less bureaucratic state so that businesses can operate in an environment of stability and predictability.
Consumers are now looking for, along with quality and affordable prices, greater convenience, personalisation and immediate service.
Trends and changes in retail
How do you anticipate that your company's sector of activity will develop in 2026? What are the biggest trends/changes that you expect to occur?
The indications are undoubtedly positive. Both the turnover value index and the turnover volume index are showing upward trends, which, as everything indicates, will be maintained. Retail trade is in a continuous phase of dynamic transition, both internationally and in Cyprus. A central element is the leading role of technology, digital tools and artificial intelligence. The trends recorded in 2025 will continue with greater intensity in 2026: Massive shift to digital services and e-commerce, which is now a stable and constantly growing sales channel. Artificial intelligence is now integrated into all functions, from inventory management to the customer shopping experience. Investments in the retail sector, mainly in the direction of technology and automation, are increasing.
Consumers are now looking for, along with quality and affordable prices, greater convenience, personalisation and immediate service. The Alphamega Hypermarket chain was the first Cypriot company to follow the path of digital transformation across its entire range of services.
Our online store records sales equivalent to a large physical store, while the Click & Collect service is growing at an impressive pace. It is no coincidence that the company's IT Department was certified with the international standard ISO/IEC 20000 for IT Service Management.
Furthermore, the strategic partnership with Microsoft and the utilisation of Microsoft Dynamics 365 Finance and Operations fully modernises the digital infrastructure, aiming to transition to a state-of-the-art and integrated business process environment.
At the same time, we are progressing in utilising advanced artificial intelligence models, which optimise the efficiency of our operations and upgrade the consumer experience, with personalised offers, a modern and user-friendly application, as well as the automation of a series of tasks for our employees.
We want to be the protagonists and not follow evolution and progress. In this light, the prospect of partnerships and strengthening our presence is on the horizon and on our agenda.
The strategic acquisition of Foody Express and other partnerships
A strong trend that seems to be taking hold in Cypriot business is that of acquisitions and mergers. Will we see it strongly in your sector as well?
The culture of mergers and acquisitions is constantly strengthening, as a result of the need for economies of scale, enrichment of know-how and strengthening the resilience of businesses. In the retail sector, this trend has begun to appear, especially in services related to online delivery.
The recent acquisition of Foody Express by Alphamega Hypermarkets is a strategic move in this direction. Our goal is to introduce the most modern tools in retail and, most importantly, to provide even faster and more reliable solutions and services to consumers. We want to be the leader and not follow evolution and progress. In this light, the prospect of partnerships and strengthening our presence is on the horizon and on our agenda.
We will move forward with the aim of further development, to be at the side of every consumer, in as many areas of Cyprus as possible, with an emphasis on innovation, digitalisation, convenience, quality and variety in the product offering.
Further development in 2026
What can we expect in terms of your organisation's plans and growth and expansion strategy in 2026? What moves do you intend to make in this direction?
Alphamega Hypermarkets is currently the largest and fastest-growing supermarket chain in Cyprus, with a network of 21 stores and over 1,800 employees. The support and trust shown by the consumer public is great, and this makes us truly proud and happy.
The recognition of the services, development and innovation that guide every aspect of the chain also comes from the distinctions it has received. The company is included in the 100 most technologically innovative companies in the world, has been repeatedly awarded for its rich CSR programme, and has been certified as an employer of choice.
We will continue in this direction in 2026. We will move forward with the aim of further development, to be next to every consumer, in as many areas of Cyprus as possible, with an emphasis on innovation, digitalisation, convenience, quality and variety in the product offering.
The new year will see the implementation of the tax reform, which is taking place 22 years after the previous one. How do you anticipate that it will affect the Cypriot economy, businesses, and the attraction of foreign investment?
The tax reform that will be implemented in 2026 is perhaps the most significant institutional change of the last decade. It is an opportunity to strengthen the competitiveness of the Cypriot economy and create a more modern, more stable and therefore secure framework for businesses.
Such a reform, with proper planning and balanced logic, can indeed reduce the administrative burden through the simplification of procedures, enhance profitability and sustainability through a fairer and more rational distribution of tax rates. And of course, strengthen Cyprus' identity as an attractive destination for foreign investment, especially in sectors such as technology, innovation and logistics.
It is crucial, however, that the implementation of the reform be carried out in a gradual manner, without placing an excessive burden on businesses that are already facing increased costs and with compensatory measures.
What do you think is the role of staff in the development of your business?
I believe that human resources are the alpha and omega of a company. Our employees are our driving force and are one of the key factors in our successful path. For this reason, the satisfaction and continuous development of the skills of our people are high on our priorities. With the aim of maintaining a timeless culture of support and recognition, we proceeded to grant salary increases totaling €2.5 million, as a minimum sign of recognition and gratitude to our staff for their contribution and dedication.
These increases come in addition to a series of important benefits for our employees. We place particular emphasis on equality issues, implementing a comprehensive equal treatment programme, which ensures equal access to employment, professional training and development, as well as equal pay.
These characteristics have earned us the title of the top employer of choice in Cyprus, as well as the Investor in People certification for the fourth time in 2024, ranking us among the top 20 Investor in People employers worldwide. Continuous support, the provision of meaningful benefits, investment in skills development and the creation of a pleasant and supportive work environment are integral parts of our corporate culture. We remain firmly committed to supporting our employees, continuing to offer them significant benefits combined with a positive and pleasant work environment. After all, employee satisfaction is a key foundation of a healthy and sustainable organisation.
(Source: InBusinessNews)
