ZAGREB, 18 Feb 2022 - Retailers won't increase their margins and the price of food will go down, the Večernji List daily reported on Friday, citing the Lidl supermarket chain which has announced lower prices as of March already, one month before the government's decision to cut VAT rates on certain food products goes into force.

Prices for all categories for which the government has decided to lower VAT will certainly fall. Retailers will not increase their margin because nobody can afford to be more expensive than their competition, and when margins remain stable, prices will decrease by the difference in VAT, the president of the board of the NTL supermarket retail chain, Martin Evačić, said.

The government's measures announced earlier this week foresee VAT to fall as of 1 April, from 13% to 5%, on fresh meat and fish, eggs, fruit, vegetables, edible oil, lard, and children's food, and also in agriculture (seedlings, fertilizer, pesticides), while VAT on butter and margarine will decrease from 25% to 5%.

Evačić, who is the president of the Retailers' Association at the Croatian Employers' Association (HUP), underscored that the concentration of retailers on the Croatian market is too high and that consumers watch how they spend every kuna. The lower VAT will mean a decrease in budget revenue, however, with the lower prices demand could be greater, which could offset the effect of the lower revenue and ensure the same profit for retailers.

Some retailers have announced the price of flour and bread could go up again in March by an average of 10% so we are yet to see if some of the government's measures will prevent that increase, Evačić says.

The Konzum supermarket retail chain has announced that it will reduce the prices of more than a thousand items as of Monday, 21 February, including fruit and vegetables, meat and fish, eggs, edible oil and lard, butter and margarine, children's food, and hygienic pads and tampons.

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ZAGREB, 15 Oct 2021 - A total of 28,615 businesses operating in Croatia's wholesale and retail sector in 2020, employing 192,367 workers and earning HRK 260.2 billion in total revenues, according to an analysis by the Financial Agency (Fina) for the years 2004, 2009, 2014 and 2020. 

By comparison, there were 27,044 wholesale and retail operators in 2004, 27,262 in 2009, and 26,260 in 2014.

The number of workers in this sector was 5.2% higher in 2020 than in 2004. The largest number was recorded in 2009 (198,988) and the lowest in 2014 (178,645).

The highest total revenues were generated in 2020, of HRK 260.2 billion, which was an increase of HRK 82.6 billion compared with 2004.

In 2020, the highest total revenue was reported by Konzum Plus (HRK 10 billion), followed by Lidl Croatia (HRK 6.1 bn), Spar Croatia (HRK 5 bn), and Plodine (HRK 4.5 bn).

The highest total profit was also generated in 2020, of HRK 10.2 billion, and was two and a half times higher than in 2004. The best earner was Lidl Croatia, with a profit of HRK 274.8 million.

The highest total loss was recorded in 2009, amounting to HRK 4.3 billion, which was 60.9% higher than in 2020 when it totaled HRK 2.6 billion.

The consolidated net result for last year was HRK 7.5 billion, compared with HRK 1.86 billion in 2004, HRK 1.44 billion in 2009, and HRK 2.3 billion in 2014.

The largest fixed capital investments were made in 2004, of HRK 8.9 billion, while in 2020 they totaled HRK 2.4 billion, which is 72.9% less than in 2004.

The largest trade deficit was reported in 2020, of HRK 37.4 billion, compared with HRK 25.6 billion in 2014, HRK 36.7 billion in 2009, and HRK 36.3 billion in 2004.

Last year, the biggest importers were Lidl Croatia (HRK 2.3 billion) and Medika (HRK 2.1 billion).

In 2020, the average net monthly salary in this sector was HRK 5,816, up by 84.3% compared with 2004 when it was HRK 3,157. It was 2.6% lower than the average wage in the enterprise sector, which amounted to HRK 5,971.

(€1 = HRK 7.5)

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