The Croatian Competition Agency (AZTN) conducted a detailed analysis of the retail market in Croatia, prompted by increasingly frequent consumer complaints and media reports about almost identical prices of food products in different stores.

The analysis concerned the way prices were formed for ten selected food items at the six largest domestic retail chains, as well as statements in the media about a possible increase in purchase prices by suppliers in 2025.

The research covered products such as fresh milk, liquid yogurt, kefir, chicken fillet, chicken wings, carbonated and still mineral waters, carbonated soft drinks, powdered beverages, and chocolate spread. The sample included products from domestic manufacturers, as well as several well-known brands of foreign manufacturers. The examination did not include products for which maximum retail prices have been prescribed, in accordance with the applicable decisions on direct price control measures.

The analysis was conducted over six months, from September 1, 2024 to February 28, 2025, writes dnevno.hr. Six leading retail chains participated in the research, selected according to data from AZTN's annual analyses for the mixed goods sector. The data were collected through questionnaires delivered to retailers, and they were asked for information on purchase and retail prices, margin levels, pricing methods, and the use of recommended prices. Supplier price lists from the period from October 2024 to January 2025 were also obtained, in which price increases for food and non-food products were proposed to retailers.

The research results showed that most of the examined products at different retailers had different retail prices during the observed period and that retailers adjusted prices at different points in time. All included retailers stated that they independently determine retail prices and the way they are formed, monitoring the competition using publicly available information.

Retailers explain why Croatia is more expensive than Germany, Italy, and Slovenia

Retailers highlighted tax burden, territorial specificities of individual countries, global and national economic trends, and the more significant import of food products into Croatia as the main reasons for differences in the retail prices of comparable products in Croatia compared to other countries, such as Germany, Italy, and Slovenia. When it comes to bakery and confectionery products, for which the highest average margin was determined in 2023, retailers state that the reasons are above-average write-offs compared to other products, as well as additional labor costs and other costs associated with baking bakery products in stores.

As for suppliers' announcements of price increases, it was established that proposals for price hikes were delivered to retailers at different times, and the proposed increases ranged from 2.5 to 33 percent, depending on the product and supplier. After a thorough analysis of the collected data, as well as the legal and economic assessment carried out, AZTN concluded that there is currently not enough basis to initiate proceedings ex officio against retailers or suppliers, since no clear indicators of prohibited forms of cooperation or distortion of competition under Article 8 of the Competition Protection Act were established.