Foreign supermarket chains struggling in Croatia

Foreign supermarket chains are struggling in Croatia and can not compete with the major local player, according to data from Financial Agency (FINA).

Croatia’s largest supermarket chain Konzum topped the list of leading supermarkets in the country in 2012 with revenue slightly up to just under 2 billion euros.

Konzum’s revenue was more than its foreign supermarket competitors Plodine, Lidl, Mercator, Kaufland and Spar revenue put together. Konzum’s grip on the market may get even tighter if its acquisition of Slovenian chain Mercator succeeds. Kozum would then be the largest chain in central Europe.

Despite foreign chains trying to attract shoppers with discounts and specials, Croats are still favouring Kozum. In 2012 Lidl, owned by the Schwartz group, recorded losses of 41.4 million kuna (5.4 million euros). Kaufland supermarket chain, also owned by the same owner, were down slightly less in 2012 with 24.3 million kuna (3.2 million euros) losses.

The worst performing foreign chain in Croatia were Mercator which had a double-digit fall in revenue of 11% from the previous year. Austrian chains Spar and Billa did not fear much better with losses of 102.5 million kuna (13.4 million euros) and 106.9 million kuna (14 million euros) respectively. Only Konzum, Plodine, Tommy and German giants DM-Drogerie market had positive business results in 2012.

Source: croatiaweek.com