SPAR stays in Hungary

On 18 November – in the afternoon when the Hungarian parliament gave green light to a new tax package that constitutes a major blow for the Hungarian retail sector – SPAR Hungary held a press conference. Director of communications István Fehér welcomed the representatives of the media and gave the floor to Rudolf Staudinger, chairman of SPAR Magyarország Kft.’s board of supervisors. He told that the company planned to invest HUF 30 billion in Hungary next year, but they have to reconsider now because of the new tax burden. The company’s 2-2.5 percent profit isn’t enough to pay the new taxes. What is more, the progressive food chain supervision fee punishes sales growth: the 6-percent rate laid down in the new law means that from 2015 SPAR will have to pay HUF 9 billion more in this tax category only. Erwin Schmuck, managing director of SPAR Magyarország Kft. emphasised that with 13,000 employees SPAR is the fifth biggest employer in Hungary. They serve 500,000-600,000 customers every day and the director hopes that they can start a dialogue with the government, to make them understand the retail chain’s situation in its details. Gabriella Heiszler, firm manager of SPAR Magyarország Kft. stressed that last year they paid HUF 26 billion in taxes and SPAR Hungary was the first to install the online cash registers. 90 percent of the products they sell are Hungarian and they cooperate with more than 800 Hungarian suppliers. All three SPAR executives reiterated that for the time being the company tries to cope with the increased tax burden by restructuring costs and postponing investments. They do their best not to harm the interest of suppliers and customers. SPAR plans for the long term in Hungary and stays in the country, despite the current hardships.