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Head of SPAR Hungary: Győr battles with a crisis of trust, everyone goes to Slovakia to shop
Hungarians living near the Slovakian border are increasingly crossing over to shop, driven by economic pressures and government policies. This trend has significantly impacted local retail in cities like Győr, where stores are reportedly struggling to retain customers. Heiszler Gabriella, CEO of SPAR Hungary, highlighted this issue during the Portfolio Retail Day 2025 conference, describing a “crisis of trust” in the retail sector.
One of the primary factors behind this shift is Hungary’s price cap policy, which limits retailers’ profit margins on 30 essential food items to 10%. While aimed at curbing inflation, this measure has placed significant strain on retailers. Heiszler noted that SPAR has resorted to aggressive promotions and targeted campaigns around paydays to sustain sales. However, she warned that if the price margin cap remains in place beyond May, drastic cost-cutting measures will be unavoidable.
The situation is compounded by rising supplier costs, which retailers are unable to fully pass on to consumers due to the price margin cap. This has created a challenging environment for businesses, with Heiszler emphasising that solving these issues requires collaboration across multiple sectors rather than relying solely on retail adjustments.
Slovakian shopping tours
Meanwhile, Slovakian stores offer a more favourable shopping environment for many Hungarians. Lower prices and greater product availability have made cross-border shopping an attractive alternative, further draining business from Hungarian retailers near the border.
The larger economic context also plays a role. Hungary’s economy faces subdued growth prospects due to weak external demand and limited investment. Although household consumption has risen slightly, it has not translated into robust retail performance. This mismatch between rising wages and stagnant domestic spending highlights deeper structural challenges within the Hungarian economy.
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