Katalin Neubauer: margin stop and mall stop do not serve the interests of retail

By: Trademagazin Date: 2025. 08. 28. 14:39

The government has extended the margin cap and tightened the plaza stop rules, while the Jobbik party wants to initiate a referendum to make December 24 a public holiday. InfoRádió asked Katalin Neubauer, Secretary General of the Hungarian National Trade Association, about these issues.

“It cannot be sustained in the long run”

Katalin Neubauer
Secretary General
HNTA

Katalin Neubauer called the extension of the margin cap very bad news. The measure, in force since March, affects 30 product categories, which in supermarkets means 500–700 items that must be sold with a maximum 10% margin.

“This cannot be sustained in the long run,” she said, adding that supermarkets suffer the greatest losses, while leading discounters continue to strengthen. According to the Secretary General, retail prices are not the real cause of inflation, as the consumer price is “only the tip of the iceberg.” Intervention should instead target earlier stages of the supply chain, such as producer and cost prices, as well as energy costs.

Supermarkets and small shops at risk

The Secretary General emphasized that supermarkets ensure product variety, but the margin cap weakens them. She described the situation of smaller shops as even worse, as they face higher purchase prices and customers have increasingly turned away from them in recent months.

Plaza stop: new permit required for larger stores

The government also tightened the plaza stop rules: new stores larger than 400 square meters selling daily consumer goods can only open with a special permit. Neubauer recalled that when the regulation came into force in 2012, three-quarters of the market was still in Hungarian hands, but today the balance has shifted in favor of multinational companies.

“The fewer Hungarian retailers there are on the market, the fewer domestic processed products will reach store shelves,” she warned, adding that the current amendment aims to close loopholes that multinationals had exploited in recent years.

December 24 as a public holiday?

Jobbik has once again revived its old initiative to make December 24 a public holiday. However, according to Katalin Neubauer, this is not timely at present.

“Each chain organizes its holiday opening hours individually: some have long been closed on Christmas Eve, others close at noon. At the same time, many employees value the holiday pay, and many customers can only do their holiday shopping then,” she said.

According to the Secretary General, the balance between supply and demand should be found, as the issue is much more complex than political parties tend to present it.