The Federal Competition Authority (BWB) reported that there was no significant increase in profit margins for supermarket chains. Trading margins increased “not systematically” in the period from the second half of 2022 to the second half of 2023.
In a long-term comparison, competition watchdogs also found no significant increase in profit margins among agricultural and food producers.
Unfair practices towards suppliers
The large number of reported unfair practices towards suppliers is worrying. No comment has been made at this time about the exact dealers being investigated.
The competition watchdog’s investigation also found that high market concentration in Austrian food retail had no causal effect on price increases.
200 local suppliers left the market
Although Spar, Rewe (including Billa and Penny), Hofer and Lidl together have a market share of 91 percent, according to BWB, more than 200 local suppliers have left the market since 2019 and the large supermarket chains have continued to expand their industry. networks.
About the Austrian price surcharge
In its report, the Federal Competition Authority mainly pointed to a so-called “Austrian price surcharge”. In the food industry, especially among international companies, there are incentives to offer the same products at different prices depending on the country strategy.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
