Where to shop? These are the best discount chains in Hungary
The list for the top discount chains in 2022 is out. Lidl maintained its first-place position with a significant advantage. Aldi surpassed Penny this time, with a growth in revenue of around 30 percent. Even though their profits were similar, their number of stores significantly differs: Aldi generated slightly more revenue in far fewer stores than its competitor.
This year’s top list was extended to include 15 participants. The reason is that an increasing number of retailers reach the revenue threshold required to enter the list each year. The success and revenue growth of newly featured chains operated by Kerekes, Napcsillag, and DĂ©l-100 are unprecedented, even though we know that inflation significantly boosted the revenue of every chain, writes 24.hu.
Hypermarkets in the lead
Among the hypermarkets, Spar and Tesco managed to maintain their positions. Although Auchan slipped back three places, it can claim the highest efficiency based on sales data and the number of stores. The drugstores maintained their expected revenue growth, although some stand out, such as the smallest chain, DĂ©l-100, which has now entered the top list this year.
2022’s list had expanded with two additional sets of data. One is the number of employees, aiming to emphasise the importance of the workforce in the retail sector with factual information. The number of people employed by international chains approached 58,000 last year. The other highlighted data is the commercial tax, which cost the international chains listed over HUF 130 billion (EUR 350.5 million) in 2022.
Hungarian discount chains suffer
There was a clear and significant decline in the store count for Hungarian chains, from 10,600 to 7,000. For multinational chains, the number of units increased from 1,453 to 1,937 – the largest expansion was seen in Aldi, Spar, and Lidl, while Tesco experienced a moderate decrease.
Apart from the three Hungarian chains, only Tesco was unable to increase its revenue by more than 50 percent between 2010 and 2022. Aldi, Lidl, Rossmann, and Penny were the outstanding performers, while DM, Spar, and Auchan more than doubled their revenue. Lidl’s gross revenue approached HUF 1,200 billion (EUR 3.24 billion) last year.
Change in consumer habits
In 2022, the consumer confidence index continuously declined in Hungary. In terms of purchasing power, the income of a Hungarian household, which amounts to EUR 8,700 , now only ranks 30th in the European ranking. Meanwhile, food inflation rose from 10 percent at the beginning of the year to nearly 45 percent by the end of the year.
The difference between Budapest and the countryside has also grown significantly. Price increases affected the countryside more than the Budapest region, as stated in RetailZoom’s report on the year 2022. The percentage of consumers conducting large-basket shopping in Budapest averaged at 15.6 percent, compared to only 6.4 percent in rural areas. While the average value of large baskets in Budapest was around HUF 29,100 (EUR 78.53), it was HUF 13,650 (EUR 36.84) in rural areas, representing a 130 percent difference, which is continuously increasing.
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4 Comments
In ALL of the FALSIFICATION being published on these reduction deals from SUPERMARKET chains – they continue to PLAY us for being DUMB.
Respectable – DNH can only or does only report the CRAP on price deductions from sources – that is supplied to them.
No “stones” can be thrown at DNH.
The NEEDS of a family – every day life of a Hungarian – remain STILL inflated in price plus 40% minimum.
It’ sin the WANTS – the slow moving not essential food stuffs and “other” – the BULL Shit – being spread around in a propaganda process – they, the Supermarkets have or are reducing in PRICE.
Supermarket Shopping – Markets for FRESH Produce – Meat, Poultry and “other” that Markets provide – they all are LOADING there PRICES at an inflationary level of plus 40%.
Needs and WANTS – but we continue to get SCREWED in Hungary – by Supermarket chains and in our Fresh Produce Markets – in our NEEDS in excess of 40% inflation costs.
I found the Hungarian owned chain CBA to be the most expensive. 2200ft for a a small jar of jam. The local Tesco was better. The local piac has better quality fruits and vegetables and meat and the prices are a little bit less than the chains. People are driving to Vienna to shop. It’s crazy. Hungarian food prices are a crisis for families and the government bears responsibility as it has sought to control everything in the country rather than let market forces and free competition bring lower prices.
IMF Paper Feb 26/23 (People including myself might forget agricultural production really suffered in 2022 due to drought. We should see much better production this year and lower prices)
“Food inflation in Hungary is the highest in the EU. Food prices have risen significantly
faster in Hungary than in other EU countries. Domestically, a drought significantly curtailed
agriculture production in Hungary in 2022, adding extra pressure of unprocessed food prices
(Hungary is a net exporter of food). Further, a relatively high degree of passthrough from
unprocessed to processed foods, driven in part by stronger bargaining power of food producers
than retailers and by low productivity in the food processing sector (MNB 2022), led to exceptionally
high processed food inflation. In response, the government introduced in February 2022 price caps
on six specific food products (granulated sugar, wheat flour, sunflower oil, pork leg, some chicken
breast and backs, and 2.8% cow milk) at their October 15, 2021 levels. The cap was extended several
times and expanded to two additional food products (eggs and potatoes). It is now set to expire in
April 2023. These caps have been ineffective in slowing food inflation as distributors and retailers
raised prices on other products to preserve their margins and food inflation continued to surge.”
Hungarians are being RIPPED off at there Supermarkets.
Prices being charged no “rime nor reason” for there near on 55% increase in cases higher, over past 12-14 months.
Just propaganda trying to “suck us in” all this Price reduction crap.
Nothing of NEEDS is going to come down in Hungary.
Orban and his Government – heavily in the BLAME game on them – for what we have as this out of control continuing INFLATION price EXPLOSION.