Serbia’s economy is steadily growing, which has led to a gradual increase in household purchasing power and domestic consumption-key components of GDP. However, consumers widely agree that retail prices are disproportionately high compared to the standard of living, with some claiming that prices in Serbia are higher than in parts of Western Europe. In response, many have altered their shopping habits, avoiding bulk purchases.
Concerns about possible price-fixing prompted the Anti-Monopoly Commission to launch proceedings against the country’s four largest retail chains. Public dissatisfaction has also sparked consumer actions, including organized boycotts of major retailers.
Competition is seen as the most effective way to stabilize the market and bring prices in line. Despite continuous announcements of new international entrants, the last major expansion was by German discounter Lidl. Currently, French retail giant Carrefour is reportedly in advanced negotiations to enter the Serbian market, possibly within 2025. Carrefour’s expansion plans also target North Macedonia and Albania.
Other potential market entrants include Italy’s Eurospin, a private-label discounter already present in Slovenia and Croatia, and Russian retailer Fix Price, known for low-cost goods. Fix Price is preparing to open stores in Serbia this year, adding to its existing presence in Latvia.
Retail remains one of the most profitable sectors in Serbia, largely due to high inflation which boosts revenue. Market interest is also driven by Serbia’s position as the leading economy in the Western Balkans. Still, economic and demographic challenges persist—particularly a shrinking population—which may limit long-term growth.
Experts argue the government should ensure fair competition rather than impose price controls. Increased competition would benefit consumers through lower prices while allowing businesses sustainable profits. Consumer organizations, such as “Efektiva”, believe recent boycotts have pressured retailers to become more competitive, especially on essential items.
