Pressure on retail chains continues to grow — warns Lidl Hungary CEO

Special tax: two-thirds of potential profit went to it

Lidl paid around 55 billion forints in retail special tax in 2024, which represented almost two-thirds of the company’s potential profit. According to the company manager, the regulatory environment (special tax, mandatory sales, margin freeze) overall distorts healthy competition and has also led to losses in chains that previously operated stably and profitably.

Significant investments and wage increases

In the meantime, Lidl continues to implement serious developments. In 2025, it implemented modernizations worth 106 million euros (nearly 42 billion forints), including store renovations and the installation of solar panels. Retaining employees is a key goal: the gross average salary of store managers is already 1.37 million forints, while that of store employees is 683 thousand forints; this year, there has been an average wage increase of 9 percent.

Changing consumer behavior

According to Lidl’s experience, Hungarian consumers are becoming more aware: they buy smaller quantities more often and pay more attention to avoiding food waste. According to the company, this is a positive change, but purchasing power has still not reached the pre-pandemic level.

The sector is at a critical point

According to Szlavikovics, the question in the coming period will not be whether all players can develop, but how long they can withstand the burden. If a larger chain were to exit the market, it would have a negative impact on supply stability and consumer prices.

“Hungarian customers do not need fewer, but more stores. That is why the threat of chain closure is dangerous.” – emphasized the head of Lidl.

Market participants trust that the government will provide a more predictable regulatory environment in the future. The discount segment will continue to be the number one refuge for customers amid the difficulties of making ends meet, but the special commercial tax could endanger not only profits but also operations themselves in the long run.