By: trademagazin Date: 2006. 11. 20. 08:00

Restrictive government measures are putting retailers under tremendous pressure, from both customers and suppliers. As some of these measures are already in effect, growth of retail trade is slowing down in the last quarter of 2006, and the overall revenues are expected to fall by 4-5 per cent in 2007. This Christmas, however, is still expected to be a strong period.
In 2007, customers will probably become more price sensitive and many will defer purchases of products which are not essential. Only a minority is expected to continue spending at the same rate as before. Retailers will have to deal with the effects of higher inflation, higher prime lending rate and unforeseeable fluctuations in the value of HUF.
Retailers will have to calculate how demand is going to change over the next two years. Investment and expansion might have to be slowed down, but a total stop might be risky. Employment policy will also need to be revised, as the labour-related costs of employers are increasing as well.
As far as SPAR is concerned, we expect sales of our private label products to increase and we intend to go ahead with investments in logistics and our own meat processing plant. Surveys indicate that our customers show better than average loyalty as a result of our reliable quality commitment to food safety.

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