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Growing retail chains in Serbia: Why competition isn’t lowering prices

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The Serbian market is witnessing a surge in retail chains, with reports of new brands entering the scene almost daily. Soon, two major regional retail chains will join the ranks of international brands already operating in the country.

This year saw the arrival of ALBI, which offers a range of up to 1,500 products and plans to open up to ten discount stores across Serbia next year. In May, Mömax entered the Serbian furniture market, a subsidiary of the Austrian XXXLutz group, marking its 105th store across nine European countries. Germany’s Mix Markt also launched earlier this spring, with locations in Belgrade and Novi Sad, offering a variety of products from Germany, Russia, Poland, Turkey and the Balkans.

Additionally, Mikel Coffee, Greece’s largest café chain, opened its first store in Serbia this year, offering a range of beverages, desserts, and snacks.

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The role of the Competition Protection Commission

Despite this influx of new brands, prices haven’t decreased as one might expect in a competitive market. Economist Saša Đogović explains that while an increase in brands is positive, effective regulation by the Commission for Protection of Competition is essential to ensure fair market practices.

Unfortunately, the Commission has historically been slow to act. Consumers often bear the burden of potential price-fixing agreements among retailers, especially concerning food products. This led to surprise when the Commission finally initiated an investigation into chains like Delhaize, Mercator, Univerexport and DIS, suspecting them of colluding to fix prices on certain items.

While this action is a step in the right direction, Đogović emphasizes that the real test will be the implementation of penalties and whether the state takes these issues seriously.

Ensuring fair competition

The Commission must not only impose sanctions but also guarantee a fair market environment. “Healthy market mechanisms will exist only if institutions properly enforce regulations. More retail chains can emerge, but if they identify opportunities for cartel formation, they will exploit them,” Đogović notes.

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New entrants can benefit consumers with competitive pricing, but they must be cautious as established players already dominate the market.

Upcoming retail chains in Serbia

Several regional and European retail chains are slated to enter the Serbian market soon. The Macedonian retailer Stokomak plans to start operations by the first quarter of 2025, offering around 1,600 food and non-food items. The Banja Luka-based Tropic retail chain aims to launch in Serbia by 2026 or 2027.

French retailer Carrefour has been eyeing the Serbian market for some time and is in the final stages of negotiations for an acquisition that would allow it to expand into Serbia next year. Eurospin, which exclusively sells its own-brand food products, is also expected to enter the market within the next two years.

Lastly, Czech company Notino, a major European perfume and cosmetics retailer, has shown interest in the Serbian market, though its entry timeline remains uncertain.

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