On a market that has continued to contract this year because ofsalary cuts and of the redundancies announced in the public andprivate sectors, retailers rely on discounts more than in 2009.
The price cuts amount to as much as 40% in hypermarkets, and onthe markets most affected by the consumption decline - such aselectronics and home appliances, and furniture retail - few storechains transferred the VAT increase in the price as of July 1,risking to see their sales decline even more. On short termdiscounts can bring as much as a four-fold sales increase, butconsultants warn they can affect the financial health of a companybecause of profit reduction.
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