Hungarian retailers buy price capped products, discounter Lidl introduces ban
Due to the rush for stocks of price-capped products in supermarkets and discount stores, there are increasing shortages of goods in Hungarian stores. Suppliers are rapidly raising prices, so these small merchants can now buy products cheaper than discounters and large chains. Lidl will no longer sell three frozen products at a fixed price to wholesalers in order to ensure the continuity of food supply to consumers.
As part of the price freeze, some food items are available at last October’s prices, and those prices are cheaper than what suppliers are offering to restaurants, grocers and bakers. That is why they also buy products from supermarkets. However, this can lead to shortages.
Lidl has decided not to sell sugar, flour and chicken breast to wholesalers. The prices of the three goods are capped.
Lidl Hungary’s main objective as a retail company is to serve consumers, which is why it decided to offer three products (chicken breast, sugar, flour) exclusively to retail consumers”,
said Judit Tőzsér, head of corporate communications at Lidl Hungary.
Many retailers have already introduced quantitative restrictions, which means that they only supply frozen products in domestic quantities. But even that was not enough to deter non-residential customers, Wallet reports. “For the sake of consumers, I imagine many will have to step in and ban wholesalers,” said a source with knowledge of the retail industry. Wallet.
Featured image via László Róka/MTVA
