Tesco leader: the price cap causes us a loss of 11 billion HUF a year

By: Trademagazin Date: 2022. 11. 21. 13:27

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Zsolt Pálinkás, the CEO of Tesco in Hungary, talked about the shortage of goods, a monthly utility bill of 2 billion, shopping with a scanner gun and home delivery by drone – among other things in a recent interview with Forbes magazine.

Zsolt Pálinkás

“Regarding the price caps, we think that the intention was good at the very beginning. In uncertain times, it strengthened customer confidence and was able to generate consumption. Today, the situation is completely different: it distorts the market, artificially inflates the price of other products, and not incidentally causes Tesco Globál Zrt. an annual loss of up to HUF 11 billion”.

– said the CEO when asked by Forbes.

The fact that the range of products with a price cap was expanded to include potatoes and eggs did not particularly surprise him:

“We suspected weeks before that something would happen. We are supporters of dialogue, we talked to the authorities, we heard pro and con arguments, so it didn’t come as a complete surprise. The product selection and the speed, yes. You could hear from pasta to bread more about everything, and this is very important from our side, from the point of view of the traders. If a product has many components, it is very difficult to carry out repricing, regulation, everything that is needed in such a short time”

– he pointed out.