Citizens.al

High prices prompt calls for supermarket boycotts in Albania too

Illustration of the boycott supermarkets/Citizens campaign.

For days, social networks in Albania have been flooded with calls to boycott supermarkets in protest of high food prices. The first calls were focused on the dates of February 5-10, while a second call, launched by the “Alert” center, announced the date of February 16.

"This is a symbolic revolt that aims to encourage supermarket owners to reflect and be careful about their profit margins," Granit Sokolaj, Executive Director of the “Alert” center, which focuses on consumer protection, told Citizens.

The campaign was initially launched in Croatia, by the European Consumer Centre of Excellence (ECIP) under the name "What's up, inspector!"where within two weeks she claims she prompted authorities to impose hundreds of fines for price abuses and brought about a contraction of 80 million euros from supermarket turnover.

This initiative spread further to Bosnia and Herzegovina, Serbia, North Macedonia, and now appears to be spreading to Albania and Kosovo.

The main reasons for this boycott include opposition to price differences between countries, shaking up the authorities to reduce hidden taxes and control markets, but also a kind of "daily buffet" against companies that do not react, but benefit from price abuse.

"Supermarkets have an out-of-control profit rate, no one monitors them! The value-added tax in Albania for food products is quite high, 20%, while in Kosovo it is 8%, and in Germany 7%," Sokolaj further analyzes.

He explains that the increase in food prices in Albania began after the pandemic, which was initially influenced by the conflict in Ukraine. According to Sokolaj, it would be effective if the price control boards, as applied during the pandemic, were permanent to keep under control at least the prices of basic products in the basket.

A study by economist Ilir Ciko, compiled in July 2024, showed that prices in Albania increased significantly compared to other countries. Thus, the average price of products sold in the Albanian market was 79.7% higher than the average price of the same products sold at the same time and by the same companies in EU markets.

“The highest price discrimination results in the categories of baby food and food products (147% and 107% respectively, or more than double the EU price),” cited in the study.

According to the author, the study is a direct call to Albanian authorities against companies that abuse prices.

"Companies have created a market monopoly and dictate prices, setting them in coordination with each other," Ciko emphasized to Citizens.

According to him, the boycott is an alternative, but it is not the final solution.

"The role of the state is essential, which must promote competition in the market and punish companies that do not comply with competition law," he stressed.

Ciko adds that replacing shopping in supermarkets with shopping in small stores is not a good suggestion, since they are also supplied by large outlets. Granit Sokolaj explains that for February 16, home food reserves can be used, limiting themselves to not making purchases.

"We will see how the boycott continues and then we can set new dates. For example, in Kosovo there is a lot of reaction and interaction online on this cause. I hope it continues the same here," Sokolaj expressed.

Officially in Albania, the authority charged with responding to this issue is the Competition Authority. This independent institution is tasked with controlling, punishing and preventing market abuses.

Citizens approached the Competition Authority for a statement regarding the boycott, but they stated that they have no comment regarding the matter.

What are the main Albanian supermarkets and who is behind them?

The Albanian supermarket market is dominated by around ten companies, with at least four of them having consolidated their positions through expansion and connections with international companies and brands.

Behind these networks stand entrepreneurs known for investments in various sectors, as well as politicians.

  1. Big Market

Big Market has over 100 outlets across the country. According to a report by MonitorIn 2017, Big Market's annual turnover reached 12.7 billion lek (about 95 million euros).

The network is owned by entrepreneur Vullnet Sinaj, in partnership with Ilir Saliaj. Since 2017, Sinaj has maintained a passive role due to his commitment as a Socialist Party MP.

  1. SPAR Albania

SPAR entered the Albanian market in October 2016 after the withdrawal of Carrefour and has experienced rapid expansion. In 2017, the chain achieved a turnover of 5.4 billion lek (about 40 million euros) and currently has around 90 supermarkets.

In Albania, SPAR is 100% owned by Balfin Group, owned by entrepreneur Samir Mane, known for investments in the tourism sector and ownership of several shopping malls. He is often rumored to have strong political ties to the government.

  1. Conad Albania

Conad operates in Albania through the partnership of entrepreneur Luan Leka and Conad Adriatico, one of the five cooperatives of the Italian brand Conad.

Leka owns the company EHW, which since 1992 has expanded into various sectors of the food industry, including meat processing and the production of bottled water.

For a short period, Artan Dulaku, a well-known entrepreneur in the construction and media fields in Albania, was also a partner through Concord Investment.

  1. Eco Market

Eco Market is another growing chain in the Albanian supermarket market. This chain is owned by brothers Armand and Agron Duka (passive owner), the former known as the head of the Albanian Football Federation, while the latter as the chairman of the Agrarian Environmentalist Party, currently a member of parliament.

The brothers are known as entrepreneurs in the food industry in companies producing eggs, wine, and bottled water, while in parallel they also own a network of home appliance stores.

These major chains have significantly influenced the reformatting of retail trade in Albania, offering a wide range of products and services to Albanian consumers, while there are other chains on the market such as Xhangolli, Anna Market, Albmarket or Joena.

Latest News

Leave a comment

Your e-mail address Will not be published. Required fields are marked *

Citizens.al

FREE
VIEW