GfK: the regional differences between the incomes spent on food are considerably smaller than the general difference

Some factors have a fundamental influence on the performance of retail chains: location, the performance of workers, floor space, product selection, the competitive situation and purchasing power. GfK analyses the development of purchasing power in 42 European countries, using the same methodology. By purchasing power we mean all the income a person has to spend.

In terms of income, there are great regional disparities between Hungarian regions, counties, towns and villages. Grocery retail trade competes with several product categories for the same budget, as people also have to spend money on other goods, utility costs, various services, etc.

Hungarians can spend nearly HUF 330,000 on food in a year. Consumers living in Pest County have 15 percent more to spend, while those living in Szabolcs County have a 15-percent smaller food budget than this average. It is noteworthy that if total income is considered, shoppers in the richest city have 8 times more money than consumers in the poorest village. However, as regards the food budget, the former have ‘only’ three times more money to spend than the latter. A good example of this is non-alcoholic drinks: people living in the poorest village can spend HUF 12,000/person on this category, while those in the richest city have a HUF 39,000/person budget.//