Katalin Neubauer: the extension of the mandatory promotions has a market-distorting effect

According to the expert, the government is thus putting retailers at a disadvantage, despite the fact that the industry waited until the end of December for the mandatory campaign to end. According to the government’s reasoning, the measure contributes to the reduction of sanctioned food inflation, thus preserving the purchasing power of salaries and helping to increase consumption.

Katalin Neubauer emphasized that the decree is not only about price discounts, but that traders must sell each product with a 0 percent margin, which is the same as the purchase value of the price. The General Secretary expressed his concerns about the distortion of market competition, as larger companies can still gain a competitive advantage, causing damage to smaller retailers.

According to Katalin Neubauer, the extension of the mandatory promotions could cause further damage to the market, and she also noted that wholesale players and manufacturers cannot be included in the system. The Secretary General of the MNKSZ trusts that the decision is only temporary, since in addition to the administrative burdens, the management of stocks also involves risks. The lack of customer information and the competitive advantage of larger companies further exacerbates the situation, and the Secretary-General believes that leaving the charges in place for too long will cause further problems in the retail sector.