Will SPAR withdraw from Hungary? Find out the answer here!
At a press event, Gabriella Heiszler, the CEO and President of SPAR, conveyed that the decision regarding SPAR’s withdrawal from Hungary rests with the owner.
According to VilĂ¡ggazdasĂ¡g, the CEO also disclosed that the Austrian company once again suffered losses last year. Describing her conversation with MĂ¡rton Nagy, she initially characterised it as tense but ultimately resolved on a more amicable note.
Gabriella Heiszler, CEO of SPAR, stated that the decision regarding the company’s presence in Hungary lies with the owner. This comes amidst tense relations between SPAR and the Hungarian government, triggered by accusations of state control and complaints about special retail taxes.
The Hungarian government against SPAR
Minister of National Economy MĂ¡rton Nagy underscored the financial losses incurred by the supermarket giant, suggesting that continued operations in Hungary might not be viable in the long term. The government is contemplating legal recourse against the company in response to the allegations.
Gabriella Heiszler acknowledged that the popular chain experienced losses last year, akin to the previous year, although she refrained from disclosing specific figures. She did mention that the overall market turnover decreased by 8% last year, indicating that SPAR’s turnover decline was likely around half of that figure.
Regarding the retail sales tax, they remain optimistic about winning their case but anticipate a lengthy legal process. While the government intends to litigate against the company, no formal notification has been received thus far.
Gabriella Heiszler asserted that SPAR would be profitable were it not for the special tax of HUF 30 billion (EUR 76,174,320) remitted to the state treasury.
Photo credit: Daily News Hungary
SPAR’s financial status in Hungary
Gabriella Heiszler highlighted the impact of the tax landscape and the special tax, emphasising the need for cautious spending. Despite facing increased turbulence, she underscored their commitment to projecting stability.
Heiszler subsequently presented last year’s results, hailing a notable milestone as the company’s turnover exceeded a trillion forints for the first time, reaching HUF 1,023 billion (EUR 2,596,869), signifying a growth of over 15% compared to the previous year.
The total area occupied by SPAR stores in Hungary stands at approximately 470,000 square meters. Heiszler acknowledged the hurdles in achieving substantial annual growth, partly attributed to challenges in opening new stores due to a mall freeze.
Furthermore, she noted that investment in new stores dwindled compared to the preceding year, amounting to only 22 billion Euros, resulting in last year being less prosperous in this regard.
In recent years, the relationship between the Hungarian government and the SPAR chain has deteriorated due to modifications in the tax framework and ongoing legal disputes. Nevertheless, despite these impediments, SPAR remains one of Hungary’s most popular chains, frequented by Hungarian citizens daily. Consequently, the notion of the chain exiting the country is unfathomable.
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4 Comments
Spar has the worst employees of all the major supermarket chains, hands down. The assistants at the self-checkout counters at the Nyugati store are the surliest, most unpleasant individuals you could ever hope to cross paths with. They glower at you and look like they positively hate you. And may the good Lord help you if something goes wrong and you need their assistance. They’ll yell at you and humiliate you. Even by Hungary’s infamously bad customer service standards, this bunch is a special breed altogether. I still prefer Spar’s merchandise over its competitors’ but I can’t say I love the store or the brand itself.
Maybe contact Spar’s customer service and not DNH. The true story is how Hungary’s govt (oligarchs) are squeezing out a legitimate business for their own benefit.
Maybe DNH could write about that??
Dear Bernard, please find our related articles here: https://dailynewshungary.com/popular-international-food-chain-flees-hungary-due-to-pm-orban-and-his-oligarchs/ and here: https://dailynewshungary.com/orban-cabinet-squeeze-foreign-supermarkets/.
Michael Steiner, take your Hungarian Wife with you, evert time you shop at Nyugati SPA.
May assist you with the annoyances and frustrations you obviously consider the “treatment” handed out to you.
We have NEVER over years shopping at SPA Nyugati experienced attack(s) on us as customers.
Particular female staff member, area we purchase on a regular basic’s a Roasted Chicken, she is Delightful.
We do not tolerate being “attacked” nor berated when we are the “valued customer” and I have no hesitation to “fight fire with fire” if spoken to in a disrespectful manner and to leave products or just leave a store, having had my say, to just simple, bad and vile “basic” manners attitude.