Katalin Neubauer: “Big decline in entrepreneurship”

– How much did the sector recover after the pandemic and what new difficulties it had to face in 2022?

– During Covid we thought nothing could be worse, but 2022 brought many unpleasant surprises, especially in connection with the government decision to keep the price cap on certain FMCG products after 1 February 2022. The loss made on selling these products still has a negative influence the profitability of retailers, which they try to minimise in their daily operations – with little success.

– What were the most important regulatory and other changes that affected MNKSZ members?

– In 2023 the waste management system is transformed, for instance from 1 January 2024 nearly all drink containers will become returnable. This brings about a huge change, for instance stores have to install return vending machines. We are hopeful that everything will be ready on time and the system’s launch will be successful.

– How did the number of MNKSZ members develop last year?

– In 2022 there was a small drop in the number of MNKSZ members, but the combined sales revenue of members exceeded the 2021 level by more than 20%. It was more important than the sheer numbers that the cohesion of members became stronger than ever before.

– What were the biggest results achieved by the association?

– We took several important steps to help MNKSZ members during the energy crisis. It was also a great success that the ministry said yes to our request for not making the unfair commercial practices law any stricter in Hungary. We have always stressed the fact that any regulation that is stricter than the one imposed by the European Union results in considerable competitive disadvantage for Hungarian businesses.

– What was 2022 like for MNKSZ members and what are your plans for 2023?

– I think FMCG retail produced worse results in 2022 than the companies expected. The main reasons behind this were rising energy prices, growing labour costs, extra taxes, the mandatory price cap on certain food essential, and the related great administrative burden. Businesses had to make risky decisions in this unstable economic environment, which resulted in a big decline in entrepreneurship. This is a serious problem, as development projects that would serve the purpose of offering higher-level service to shoppers may be postponed or cancelled.

– How can you help members in the present situation?

– In this situation, the most important task was to make members understand how important it is to be cautious when renewing their contracts with energy providers, which had been signed last year. It was a great achievement that from January 2023 micro-businesses get the energy from Hungarian electricity provider MVM at a fixed price: they have to pay HUF 80/kWh for electricity as of May 2023 instead of the former HUF 196/kWh rate.

– What are your future objectives?

– We would like to acquire new members this year. Last year we were too busy to concentrate on this, because of the tasks related to the mandatory price cap and the energy crisis. Now we hope that more and more companies realise: MNKSZ can help them in their work on a daily basis, for instance we can give them first-hand information on the latest legislative changes – in a form that is easy to understand and put into practice. //