Convenience stores are closing en masse: high costs and the absorbing effect of discounts

By: Trademagazin Date: 2024. 10. 09. 12:10

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Last year, around 4,000 convenience stores closed in Hungary in the second half of the year alone, and the trend continues to show no signs of slowing down. Speaking to InfoRádio, Katalin Neubauer, the secretary general of the Hungarian National Trade Association, highlighted that many small businesses were forced to close down due to the constantly rising rents and utility costs. These costs put such a burden on the operation of convenience stores that many owners decide to continue as employees.

The impact of discount stores cannot be neglected either, with their frequent promotions attracting customers away from smaller specialty stores. As a result, these stores are barely able to cover their operating costs and unable to stay afloat due to shrinking margins. The data of the Central Statistical Office (KSH) also support this trend, and according to the signs, the mass closing of small shops may continue.