Trade: 2024 Exceptionally Challenging Year for Retail Chains Belonging to SAMO

Bratislava, March 7 (TASR) - Last year was an exceptionally challenging for the chain stores belonging to the Slovak Alliance of Modern Trade (SAMO), as following a fragile recovery in consumer demand, the psychological impact of the announcement of the financial consolidation package immediately worsened consumer sentiment and led to increased caution in purchasing, SAMO head Martin Krajcovic reported on Friday, adding that revenues for SAMO members in food and drugstore retail saw average growth of 4.51 percent. "The main reason was the persisting stagnation in demand, as customers focused mainly on purchasing basic food and drugstore products for almost the entire year," explained Krajcovic. In addition to stagnating demand, the performance of SAMO retail chains last year was also affected by rising costs, which increased by an average of 6.45 percent for food and drugstore retailers. A significant proportion of the costs was related to changes in legislation and new government measures. A tax on sugary drinks was introduced, and there were also changes in VAT rates. These factors were reflected, for example, in a gradual reduction in sales prices in December, when retailers tried to maintain original prices even for products with increased VAT. Investment costs were another significant item. Total investments by SAMO members for 2024 amounted to €286 million. In 2025, SAMO expects stagnation in sales or only minimal market growth, primarily due to the continued low purchasing power among households. Salaries for SAMO members rose by an average of 9.7 percent, which aligned with the trend in retail, where salaries grew most rapidly, as confirmed by data from the Statistics Office. SAMO brings together the largest companies from the retail and wholesale sectors in Slovakia, employing more than 30,000 people. It was established on the initiative of companies such as Billa, Kaufland, Lidl, Metro, and Tesco, which became its founding members, and its current members also include dm drogerie markt, TERNO real estate and Dr. Max. lin/df