These are the challenges of the FMCG market now, according to Gabriella Heiszler
Gabriella Heiszler, president and managing director of SPAR Magyarország Kereskedelmi Kft., spoke about the challenges of the FMCG market and the development of the sector in her interview with Pénzcentrum.
Geopolitical tensions, such as the Russian-Ukrainian war or the farmers’ protests unfolding in Europe, have a significant impact on the market. Gabriella Heiszler explained that although the basic food supply of the Hungarian population is ensured, the pricing already raises serious questions. For non-food products, geopolitical tensions and events such as the blockade of the Suez Canal lead to serious price increases. SPAR works to find solutions for the stability of supply chains and mobilizes regional resources to increase production in Europe.
The competitiveness of the commercial sector is further hampered by the 27% VAT, which Gabriella Heiszler called a “world champion”. The price increase, high VAT and the so-called “extra profit tax” together pose a challenge to traders. High VAT also encourages shopping tourism, just as shopping across borders at a lower tax rate is becoming more and more attractive to Hungarians.
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