Major retailers: Our profits don't exceed 5% of turnover

The Association of Large Retail Networks in Romania (AMRCR) has answered the accusations made by foods producers that say profit margins in Romanian modern retail are smaller than in traditional retail and that suppliers need to focus on making their production efficient, instead. “Retailers’ turnovers are public knowledge, as well as their profitability rates. No large retail chain, which sells mostly food, derives profit higher than 5% of its audited turnover, ” said Alexandru Vlad, chief executive of Selgros Cash & Carry and AMRCR vice-president. He explained that as far as competition goes, the abuse of power could not be blamed on an entire industry, but on a single player on the market. The main accusations producers have made against retailers are the overly high shelf taxes, which artificially increase the price of products. “People keep asking one question, why foods in certain categories are more expensive in Romania than elsewhere in the EU? Let’s use Germany as an example, which has lower prices than the European average; precisely the result of free trade and strong competition among major store chains,” Vlad added.