“Bulgaria is not a colony of the retail chains” – with this position, Lyuboslav Kostov highlighted the high prices of food, the strong market position of major retailers and the lack of sufficient transparency in the formation of the final price.
The economist and lecturer at the University of National and World Economy insists that the entire journey of a product should be tracked – from the producer, through the supplier and retailer, to the shelf. In his words, without clear data on each individual part of the chain, it is difficult to establish which markup is commercially justified and which results from excessive market power.
The issue is once again on the agenda because of the results of inspections by the Commission for Consumer Protection. In October, the commission reported markups of more than 100% on some of the dairy products, fruit and vegetables inspected. In separate cases, markups of up to 141% were found.
The Commission for Consumer Protection also pointed out that for some goods, the increase in the supply price did not justify the rise in the retail price. The commission asked retailers to provide justification for the differences identified, warning that sanctions could follow if no proven economic reason was provided.
Law on major retail chains in preparation
The government said it would submit a bill regulating major retail chains by the end of 2026. Minister of Agriculture and Food Plamen Abrovski said the aim was to clarify the rules on pricing and to guarantee food quality and safety.
“We want to see how this pricing comes about, so that milk in Luxembourg is cheaper than in Sofia,” Abrovski said.
On November 12, the Commission for Protection of Competition also announced new proceedings against a major retail chain. The company’s name was not disclosed. The CPC said the investigation was related to problems in relations between the chains and their suppliers.
According to Kostov, the state must protect consumers, Bulgarian producers and small retail outlets simultaneously. His position is that the free market does not rule out regulation when several companies account for a significant share of sales and have the ability to influence delivery terms and final prices.
It remains to be seen what specific restrictions will be proposed in the bill and whether they will cover only trade practices or also relations between the chains and their suppliers.
Sources: novini.bg, bntnews.bg