The impact of the boycott against large retail chains in Bulgaria due to high food prices is expected to become clearer with official data from the National Revenue Agency, set to be released this afternoon.

According to Nikolay Valkanov, executive director of the Association for Modern Trade, loyal customers have largely remained unaffected. Speaking on BNT, he pointed out that the Commission for the Protection of Competition (CPC) had conducted a thorough investigation and issued a decision on January 29. The findings revealed no evidence of coordination among retailers to manipulate prices. Instead, price increases were attributed to rising delivery costs, which include higher expenses for energy, fertilizers, and chemicals. Additionally, retailers themselves faced increased operational costs. The CPC's report also noted that there were no significant commercial profits observed within the retail sector during the peak period of inflation.

Valkanov also criticized the way price comparisons were being made, describing them as misleading. He emphasized that while some food items, such as butter, had similar prices in different countries, this was largely due to the fact that over 90% of the butter consumed in Bulgaria is imported, as domestic production is minimal.

The boycott was initiated by four organizations as a response to rising food prices. Observations from one of Sofia’s more affluent southern districts indicated a slight decrease in the number of shoppers and fewer cars in retail parking lots. However, stores were not empty. Some supermarket chains responded with significant discounts, and the shoppers present included elderly individuals, parents with young children, and restaurant owners.

Many customers were unaware of the boycott, while others had stocked up on groceries the previous day to participate. Some citizens expressed belief in the effectiveness of collective action, while skeptics doubted its impact, citing previous unsuccessful protests. Others voiced disapproval of the boycott's initiators or dismissed price controls as an ineffective market approach. One shopper noted that the rising cost of goods, particularly of lower quality, was placing additional strain on pensioners and those with lower incomes.

At the same time, an opposing movement emerged, encouraging people to shop during off-peak hours. Social media posts promoted this as a counter-protest against the boycott.

Andrey Velchev, chairman of the Association for Affordable and Quality Food, expressed satisfaction with the boycott’s outcome, stating that it had drawn attention to consumer concerns. Speaking on BNT, he argued that both retail chains and government authorities could no longer continue with their current pricing strategies. He emphasized the ongoing decline in public trust towards supermarkets and urged for a structured dialogue between producers, consumer organizations, and policymakers. According to Velchev, the focus should be on seeking solutions rather than merely diagnosing the issue.

Former Agriculture Minister Mehmed Dikme also weighed in, noting that organizing collective action in Bulgaria is often challenging, whether for a boycott or even elections. He argued that supermarkets would not suffer significantly from the protest, as pricing is largely dictated by producers.

Dikme questioned the role of the CPC in addressing price hikes and monitoring unfair competition. He called on Parliament to implement reforms in the commission as soon as possible. He also highlighted that January and February are particularly difficult months for households due to post-holiday financial strain. Ultimately, he stressed that market forces, rather than state intervention, should regulate prices.

Sources:

• BNT
• BNR
• Novini.bg