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September 28, 2020
BUSINESS

Movement against hypermarkets’ monopoly gaining traction

+ Hypermarkets and supermarkets do not respect the Romanian consumer, according to the representative of food industry trade unions

 

Hypermarkets and supermarkets do not respect the Romanian consumer, producer and employee, and if need be food industry trade unions will protest in the parking lots of these commercial centres, alongside the general public, if that is the only way of solving the problems, Dragos Frumosu, President of the Federation of Food Industry Trade Unions (FSIA), stated on Thursday.

“Hypermarkets and supermarkets do not respect the Romanian consumer. I noticed this, firstly, since the VAT reduction. There was a period of one or two months in which they tried to respect [it], then most of the prices went back up. They do not respect anything. On one hand because of the situation created, which we hope would improve, and, on the other hand, through the introduction of those extra taxes and mark-up over and above the producer’s wholesale price, which means at least 30 percent more to the shelf [price]. The profit taxes they pay are very small, because their money in fact go somewhere else, not in the trade mark-up for which they should pay taxes in line with the profit,” Frumosu pointed out.

According to the FSIA President, the trade mark-up on Romanian products should be similar to the one on imported products, and a law should protect Romanian producers in this sense.

“We want more Romanian products on the shelves, we want Romanian producers to be respected, we want the trade mark-up on our products to be similar to that on imported products. Today, I am convinced Romanian products have a higher mark-up on the shelf compared to imported products. Of course, we don’t want a law that would come to the advantage of the Romanian producer but one that would support the Romanian producer in dealing on an equal footing with any producer from any European Union member state. We are defending our jobs. A good legislative regulation of these situations could lead to price drops and higher sales, which means more money for food industry producers and probably better salaries for the employees,” Dragos Frumosu underscored.

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