January 11, 2023 - Since the euro was introduced as the official currency in Croatia, there has been a series of price comparisons of products in Croatia and other countries, especially Slovenia. Lidl Croatia explained to Večernji why the prices are different. They point out that the formation of prices in a country is influenced by numerous factors, from the amount of the VAT rate, excise duties, and product analysis costs to logistics costs and the like.
Index compared Lidl prices in Slovenia and Croatia in detail.
"In the case of comparing prices in Slovenian and Croatian Lidl, the VAT rate on food in Slovenia is 9.5 percent, while in Croatia, the rate is 5 percent for some products (bread, fresh meat, and fish, eggs, fruits, and vegetables, edible fats and oils, baby food, pads, and tampons, which make up about 10% of our total assortment), and the rest is 25 percent," they state, as reported on Index.
"Regarding the comparative account from both Lidls, which was published in several Croatian media, 8 out of 10 products from the said account from the Slovenian Lidl have a tax rate of 9.5 percent, and in Croatia, 25 percent. This is a difference of 15.5 percentage points. Furthermore, Croatia pays a return fee on PET packaging of 0.07 euros, which is reflected on products such as mineral water and juices," states Lidl.
Fuel price
They further note that gasoline and diesel are cheaper in Slovenia, which makes a difference in the logistics costs for the delivery of goods. At the same time, they note that Croatia is geographically significantly larger than Slovenia. "It is demanding in terms of transportation due to the specific geographical shape, and the logistics also include islands, which is an additional challenge," they state in the press release.
"Some of the factors that led to global disturbances are the prices of raw materials, the availability of goods, the rise in logistics prices, the rise in electricity and gas prices and general costs such as maintenance, the impact of the war in Ukraine and, consequently, high inflation. The retail prices of certain products rose in line with the growth of purchase prices and other factors that influenced movements in global markets, " they state.
"We would like to emphasize here that we did not blindly transfer the increase in the input prices of our suppliers to our customers but corrected the prices with extreme care and concern, precisely so that we would not allow our customers to feel the full weight of the inflationary pressure that appeared," it is further stated in Lidl Croatia's explanation.
They also claim that Lidl Croatia did not increase prices during the switch to the euro.
"Prices of products from Lidl's regular range have been converted from kuna to euros according to the rules of mathematical rounding (without unjustified price increases) in favor of the customer. Also, to confirm a transparent relationship with customers, Lidl has joined the Code of Ethics, which determines how business entities act for a reliable and transparent introduction of the euro to create trust and a safe environment for consumers. Within the scope of the inspections so far, no unjustified price increases have been found in Lidl Croatia," they said.
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