Boycott the store: But what if there is no alternative?

A decrease in turnover of almost fifty percent - this is the result of last week's one-day suspension of purchases in large retail chains in Croatia, as a consumer revolt due to high food prices, writes Deutsche says.

Guided by the success that this type of expression of dissatisfaction has created among neighbors, a similar action is also in effect in Serbia.

Namely, the Association for Consumer Protection Effectiva called on citizens to boycott the purchase of groceries in large retail chains today.

The association points out that they have compared the prices of products in the country and the region for a long period of time, with which they came to the conclusion that the prices of products in Serbia are among the highest in Europe, and that some domestic products are cheaper in neighboring countries than here.

That is why, they say, the only thing left is the direct suspension of purchases in those stores.

Suspicion of price fixing

In October of last year, the Commission for the Protection of Competition launched a procedure for investigating the violation of competition against four trade chains - Deleze, Mercator S, Univerexport and DIS - due to the suspicion that they agreed on prices and thus violated certain provisions of the Law on Protection of Competition.

The then Minister of Internal and Foreign Trade, Tomislav Momirović, said that it was a "very serious procedure", which could result in large fines, and he did not rule out the possibility of potential closure of the mentioned companies.

However, the Commission no longer commented on that procedure, Serbia in the meantime was left without a Government, and the trade chains, according to the representatives of Effectiva, continued with unbridled price increases.

"This is a warning boycott"

"It burned down." I expect consumers to show unity and solidarity, fight back and show that they do not agree with the price policy of the largest retail chains. This is our attempt to force them to lower prices," Dejan Gavrilović from the Association of Effects told DW.

He notes that today's boycott is a "demonstration exercise for both traders and consumers", in order to see "what we are ready for". Although it is a one-day suspension of purchases, the idea is to go for somewhat more rigorous measures, in order to achieve a longer-term effect.

"Each boycott has its own logic and implies a change in habits." If we show unity today, the next step would be to target one or two traders for a longer period, a week or ten days. This would disrupt their cash flows, so this is actually a warning boycott".

Gavrilović points out that a drop in demand would also cause a drop in prices, and he is convinced that "if we force the largest retail chains to lower prices, the others will do the same."

Greater participation of the state and increased competition

Economist Jelena Žarković is not too optimistic about the announced boycott. She believes that it will only achieve a one-time effect and reduce traffic for that day, but without more permanent solutions, and that buyers are powerless within the existing market conditions.

"Customers have no influence because they have no alternative, only larger retail chains are available to them." Of course, there are also small stores where the prices of some products are lower, but there are significantly fewer of them," Žarković explains to DW.

"And if it pays for a small shop to have a lower price than Maxi's, and still make a profit, can you imagine how much he's getting?"

Therefore, she believes that this boycott will be more symbolic, but that it "will not change anything" until the overall market conditions are regulated and the state takes a greater part in it.

"The solution is to finish the procedure that the state is leading and to see if there was any price matching," she says.

"In addition, it is necessary to increase competition by bringing new chains to the market, which can have a small store in every neighborhood." That's the only way you can compete in prices, and all of that is the role of the state," emphasizes the professor of the Faculty of Economics in Belgrade.

"The popular revolt encouraged the people"

Žarković also believes that the timing is wrong for this type of boycott, because "all eyes are on the student protests." She also reminds that on January 24, there was a general strike, which was joined by some stores, and citizens were urged to refrain from shopping in stores.

All this, he says, somehow exhausts the citizens and it would be more effective if it took place at a different time.

Gavrilović from Ektefera, on the other hand, points out that it was "the popular rebellion that encouraged people", and that "the interest is shared, and the moment is ripe".

The customers we spoke with generally believe that the boycott is justified and plan to take part in it. For some, it is only a symbolic form of support, while others think that this is just the beginning of a larger rebellion.

"With the boycott, we are sending a clear message that we are not passive consumers and that we can influence market conditions, in order to get fairer prices and a better standard of living," one girl told us.

Tatjana, a young mother, agreed with this, as she told DW that "a longer-term boycott would give better results, but you have to start somewhere."

Effects already visible?

Some customers also noted that the effects are already visible, because Univerexport issued a statement in which it suggested to its suppliers that the prices return to the level before the price increase.

There are, of course, those who are suspicious of the boycott. "I don't know what this will achieve because people have to get the products." Whether I fill the basket tomorrow or today does not change anything".

A boycott of purchases in large retail chains is also planned for today in neighboring Montenegro, Bosnia and Herzegovina, and North Macedonia, and in Croatia, a seven-day boycott of three large retail chains has been in effect since yesterday, which will last until February 5.