Serbian president announces margin reduction

Vucic highlighted that the measures limiting profit margins apply to 23 product groups, which have been agreed upon with retail chains, and as a result, the prices of around three thousand products will decrease.

“We need to see why the standards are higher in the EU,” the president said, adding that

while in the West food accounts for 13-15 percent of the total consumer basket, in Serbia this ratio ranges between 40-47 percent, leaving people with less money for other things.

He added that the regulation, which will come into effect next week, will allow a profit margin of up to 20 percent, while the largest retail chains currently operate with a margin of around 45.2 percent.

“The four largest chains – Delez, Merkator, Lidl and Univerexport – account for 51 percent of trade turnover,” he pointed out.

Vucic also assured that the measures will not apply to local retail stores, which he said “cannot keep up with the big chains.”

In addition to retail chains, the regulation also applies to wholesale chains, and violations will be subject to heavy fines

, he added.