State-owned supermarket chain launches in Bulgaria – with only local products, low margins

With government support, under ministerial supervision

The Bulgarian parliament’s budget committee has already approved the project, initiated by the DPS–New Beginning party. The state-owned chain, which will be launched with a start-up capital of 10 million leva (around 5 million euros), will be supervised by the Ministry of Agriculture and Food. The stores are planned to sell mainly basic foodstuffs – bread, dairy products, meat, fruit and vegetables – with a maximum margin of 10 percent.

The low-price model aims not only to relieve consumers, but also to put pressure on retail chains, which have increasingly become symbols of price increases in Bulgarian society.

Short supply chain, long-term goals

The stores would offer exclusively Bulgarian products, preferably directly from producers. This would shorten the journey of food from the farm to the store shelf, reduce logistics costs, and increase the sales opportunities for domestic agriculture.

The project also focuses on reducing social inequalities: residents of smaller settlements often have access to basic food at higher prices than consumers in large cities. The state-owned chain would try to balance this inequality.

Reaction to social discontent

In Bulgaria, public resistance to multinational retail chains is growing, primarily due to the soaring prices of basic food. In recent months, several spontaneous boycott campaigns have been launched, criticizing the artificial price hikes.

Maya Manolova, head of the NGO Rise Up.BG, said that boycotts are “a powerful tool for political pressure” and can help force the government to take action, such as taking measures like the current ones.