Even behind the three percent growth lies uncertainty: stores can’t breathe a sigh of relief

By: Trademagazin Date: 2025. 08. 06. 12:42

Although Hungarian retail sales increased by 3 percent year-on-year in June, according to those in the sector, this is far from a real recovery. The National Federation of Trade (OKSZ) warns that consumer confidence remains fragile and the rate of growth still lags behind the increase in real wages.

Grocery and convenience stores continue to account for nearly half of sales, while the growth of smaller specialty stores lags significantly behind that of large chains. According to OKSZ, the distorting effect of the margin freeze, which is particularly difficult for small stores, may also play a role.

Retailers emphasize that stores are not responsible for price increases. Previous investigations by the Hungarian Competition Authority (GVH) have not found evidence of an increase in retail margins for either milk or eggs – the increase is due to supplier costs, especially energy, labor and product fees.

According to a recent representative survey, 75 percent of the Hungarian population continues to experience severe food inflation, meaning that the government’s margin freeze measures have not brought the expected results. Shoppers continue to spend frugally, especially in smaller stores.

The situation is aggravated by the fact that new burdens are being placed on retail players:
– the margin freeze,
– the special retail tax representing an effective VAT of 31.5%,
– waste management fees set by MOHU,
– and the planned extension of the mall freeze, which would make it more difficult to expand store networks, even in the case of renting.

According to Tamás Kozák, an expert at OKSZ, these measures not only make operations more expensive, but also divert resources from development. This curbs innovation and reduces the number and size of promotions, which is particularly disadvantageous for the most price-sensitive customers.