Retailers in Serbia have started removing promotional discounts in response to a government decree that capped maximum trade margins at 20% starting September 1.
The decree, issued on August 28, initially led retailers to pressure suppliers for higher rebates, prompting the government to revise the rules the following day. Logistic rebates were limited to 3%, while allowances for shortages and write-offs were capped at 1%.
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The measure covers 23 product categories, around 20,000 items, and the government claims it will reduce overall prices by about 15%. In reaction, retailers are withdrawing promotional and seasonal discounts, which may further influence consumer behavior and retail prices.
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