Blame Game: High Food Prices in Hungary Are Due to Government Windfall Taxes, Says Spar Boss
- 25 Sep 2023 12:35 PM
- Hungary Around the Clock
Hungarian consumers have become very price-conscious in the current market environment and this is reflected in the growing market share of own-labelled products, Spar CEO Gabriella Heiszler told the annual conference of economists in Eger.
The supermarket chain now generates 33% of its revenue from private-label products, up from 25%.
This change in consumer habits may have a lasting impact, as customers have realised that cheaper private-label products are of good quality, she added.
Heiszler said government measures such as the windfall tax and higher supplier prices are to blame for the sharp rise in food prices in Hungary and not profiteering by retailers.
Despite the government’s intentions to change the sector’s playing field in favour of Hungarian companies by exempting them from the windfall tax and compulsory price discounts, their market share continued to drop, while hard discount chains have doubled their market share, she added.
Stating that foreign retailers are under constant scrutiny by regulatory authorities, Heiszler said there are currently 1,600 consumer protection proceedings ongoing against the company with eight lawyers working on the cases.
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