The Regulation on Limiting Margins, introduced as one of the key measures of the state in the fight against price growth, in six months of implementation managed to curb inflation and raffia bring lower prices for certain product categories. However, immediately before its expiration, additional uncertainty was caused by the initiation of arbitration proceedings against Serbia precisely because of the implementation of the aforementioned regulation.
The procedure was initiated before the international court in Washington by Ahold Delhaize, one of the leading companies retail chains on the domestic market. As reported by domestic media, the reason for the lawsuit is the imposed margins and loss-making operations of their subsidiary in Serbia.
Let us remind you that the regulation on limiting margins was adopted as part of a set of economic measures for a better standard of citizens. It entered into force on September 1, 2025, and with it, margins in large retail chains were limited to a maximum of 20 percent for basic foodstuffs and a number of other consumer products.
What did the decree on limiting margins bring to consumers, how did it affect the business of retail chains and what consequences could it have on the announced arrival of big players on the Serbian market, analyzed the editor of the Retail Serbia portal and retail specialist Žarko Grozdanić.
Photo: Tanjug / Strahinja AćimovićIllustration
Some traders have found a way around the regulation to raise prices
"The regulation did bring lower prices, but not in all categories. We could not expect any reduction in prices in those categories where traders were already operating with low margins. Some traders found a way to circumvent the regulation in order to raise the prices of those products that were covered by the regulation, but there were not many such products", according to our interlocutor.
Grozdanić estimates that it is too early to talk about the losses of traders covered by the regulation. According to him, some retail chains have permanently closed a certain number of facilities, but mostly it is about stores that were expensive to maintain or were located near other retail facilities from the same system, which is why they were not profitable.
"Such moves were expected long before the adoption of the decree because many trade chains were expanding without a clear expansion plan, focusing on the same places with the same business policy," he points out.
When it comes to the arbitration procedure, Grozdanić says that it has not yet started and that it is too early to say in which direction it will go.
"In the 15 years that it has been operating on the Serbian market, the company Delhaize Serbia has become one of the largest investors and has invested huge amounts of money not only in stores but also in logistics, assortment, new services, socially responsible business projects. The initiation of such a procedure by a large company can partially create a negative image among potential investors in that sector," says Grozdanić.
He reminds us that we had similar situations in the past years in our environment, when certain companies asked for help from the governments of the countries they come from due to additional taxation, such as Spar Austria and its branch in Budapest.
"I don't know how the arbitration initiated by the Delhaize Serbia company will end, but it would be best for both the company and the state to find an acceptable solution for both parties," says our interlocutor.
Photo: Milovan MilenkovićThe shop
Who is planning to come to Serbia?
Regarding the arrival of other large retail chains in Serbia, Grozdanić indicates that the European retail market is going through a turbulent period and that a large number of investment withdrawals are visible, even from far more developed markets than the Serbian one.
"If we look at our market, we have a lot of uncertainty about the arrival of the Carrefour Group. Two years ago, the Greek company Retail and More signed exclusive rights for several countries in Southeast Europe, including Serbia. In addition to their official announcement of their arrival in Serbia, we have representatives of the Carrefour company from France who stated at a meeting at the Ministry of Trade that the company is considering entering without an intermediary, which means without a company from Greece. Despite the announcement that the talks will continue, as far as I know, this has not happened. I think we are again in a waiting process and that "The company is currently engaged in the business of selling its operations, primarily in Romania. Even if Carrefour does not want to enter Serbia directly, it can appear through a company from Greece that has already been on the verge of entering Serbia several times," explains our interlocutor.
However, when it comes to other chains, things are a little more clear. Grozdanić says that the Italian Eurospin is coming to Serbia, but that the consumers of his store cannot expect it before 2027 or during 2028.
"I expect the Russian Fix Price to open its first stores in the next few months, but it has a limited range of food products, so I see its arrival more as a new competitor to non-food discounters and drugstores. According to my knowledge, a large Western European food chain is reconsidering entering Serbia and is currently analyzing the Serbian market. However, one should be careful in making any statements because the same merchant has already tried to enter our market several times," he says without revealing which chain it is exactly.
However, until the arrival of new players on the Serbian market, Grozdanić expects changes in the existing ones.
"In the coming period, there will be a sale of the domestic retail chain, which will bring less choice and that is certainly not good for consumers, but we see a negative trend in many European countries - Belgium, Romania, France, Greece... The food business is becoming very complicated, so many are leaving the business, such as the Franco-Belgian chain Cora and its Louise Delhaize group, which no longer exists as of January 30," he notes.
Read the complete text on this topic on the portal Biznis.rs
Source: Biznis.rs
Real journalism costs money, and we will not be bought by tycoons and corporations. Support us with a one-time or monthly donation. The time for it is now!
