The CEO of “Lidl Bulgaria“ Milena Dragiyska rejected the allegations of markups of 135% for butter, 85% for other types of butter and cheese with a delivery price of 1.92 euros, which is sold for 4.49 euros. “Categorically not a single product in “Lidl“ has such a markup“, she said on Nova TV.
According to Dragiyska, the company works with low profit margins. She pointed out that for every 100 euros of turnover “Lidl“ earns between 2 and 5 euros. The CEO added that the chain works with over 300 Bulgarian manufacturers, and the export of their products through the company is expected to reach 100 million euros in 2026. Last year, its value was 60 million euros.
How prices are formed
Dragiyska dismissed doubts that the reported low margins could be influenced by consulting contracts or other costs. “There is no such thing in our numbers”, she said and stated that the company welcomes inspections along the entire supply chain.
According to her, the main structural problem is the lack of sufficiently competitive Bulgarian production to cover domestic consumption. As an example, she cited pork, of which no more than 40% of the required quantities are produced in our country.
Dragiyska also commented on the data on markups between 15% and 25%, indicated in a report by the Commission for the Protection of Competition, as well as individual examples of higher values. She questioned whether the compared products were fully comparable due to differences in quality, composition and content of individual ingredients. “It is not chocolate and chocolate“, she stated.
Promotions and relations with suppliers
According to Dragiyska, promotional offers for fruits and vegetables have increased from eight to 13 per week. Investment in promotions has increased from a nominal 5% to 10%. She also recalled the promise of a consumer basket with at least 30 items, reduced by at least 15%, with more than half of the products having to be Bulgarian.
The CEO denied that “Lidl“ is pressuring manufacturers through additional fees. She stated that the company works on the principle of “net-net price“ and does not charge fees for a logistics base, entrance, shelf or positioning.
Comparisons with prices in Europe
Dragijska explained the differences between prices in Bulgaria and other European countries with taxes, labor costs and different economic conditions. She pointed out that salaries in our country have increased by over 45% over the last five years, while the increase in Western Europe over the last three years is between 2% and 4%, according to the comparison she presented.
Dragiyska presented a comparison of 22 products from the basic consumer basket in Bulgaria and Germany. According to her, bread, pork and chicken meat and eggs are cheaper in our country, but she admitted that prices in Bulgaria are higher for other goods. In order for such comparisons to be reliable, VAT, promotional conditions, cuts, quality and the specific retail outlet must be taken into account.
As a way to limit costs, Dragiyska pointed to the introduction of self-service checkouts and the optimization of internal processes. She called for greater transparency throughout the supply chain, checks on unregulated imports and changes in the agricultural subsidy policy.