The price puzzle for supermarkets and the raid by the Competition Commission

Thursday, September 30, 2021

---

The responsibility of absorbing price increases, resulting from the significant increase in raw material prices, which in some product categories brings price increment levels up to 25%-30%, like for example the products derived from sheep’s and goat’s milk, is assigned to the supermarket chains. According to sources who know the market, this assumption came from the raid carried out by the Competition Commission on large retailers last week, which cannot be considered as accidental.

At the same time, there is a strong concern among the highest administrative levels of supermarket chains, about what attitude they should follow on the issue. However, there are also business leaders who made it clear by any means, that there is no options but, price increases on the shelf.

Suppliers are unable to limit the increases

The above shows us that, suppliers are de facto unable to absorb the increases, so all the responsibility is now assigned to the chains.

It is notable, that the intervention and investigation of the Competition Commission in the supermarket companies, took place almost simultaneously with the teleconference that the competent minister Adonis Georgiadis had, last week, with the supermarkets and their leaders. At the same time, the government is putting pressure on the chains to limit the increases, which in practice does not seem possible.

According to information, the Competition Commission carried out an investigation at the headquarters of Sklavenitis, AB Vassilopoulos, Masoutis, My Market, Kritikos and Galaxias.

George Lampiris

Source: FOODReporter Monday 13-09-2021 / 0570