Retail – the artery of the economy

Tesco invited its media partners to a press meeting on 14 November, where the company shared with participants the results of the study conducted by Századvég Economic Research Institute, which sheds light on the role Tesco plays in Hungary’s economy.

In his speech János Gerendás, deputy secretary of state responsible for economic planning in the Ministry for National Economy called retail the artery of the economy and spoke positively about the innovative solutions and competitive prices of retail chains. He also mentioned their negative influence on smaller Hungarian retailers and suppliers. Tesco Hungary CEO Gerard Gray looked back on the 18 years Tesco spent in Hungary and told that the retail chain is a fervent supporter of Hungary’s progress. This is well-proven by numbers: Tesco is Hungary’s second biggest employer, giving work to 30,000 people, and it is also one of the biggest partners of Hungarian SMEs and one of the biggest tax payers. From Századvég expert György Kerekes introduced the main findings of the 80-page study. Just to name a few: 1 percent of Hungary’s gross national added value is connected to TESCO’s activity, in the examined period 22-30 percent of retail sector investments were realised by TESCO, the company employs much more people from the age group most hit by unemployment than other actors of the national economy and one of TESCO’s main goal is to increase the proportion of Hungarian suppliers. Gerry Gray told Trade magazin that Tesco had to pay 50 percent of the 2010 ‘crisis tax’ despite having a 20-percent market share, forcing the retailer to cut their previously annual HUF 40 billion investment level to the half.