Aldi opened 10 new stores in Hungary this year, as in the previous years, and wants to continue expanding at this rate in the country, the local unit of the German supermarket chain said on Friday, on the occasion of the opening of the 182nd Aldi store in the country.
The company’s latest store, in Budapest’s District XI, is also the one with the largest sales area. With its sales area of over 1,800sqms, it’s almost twice as big as an average Aldi. The company spent HUF 19.5 billion on investments in Hungary in 2024. It had a headcount of close to 6,500 at year-end and around 270 Hungarian suppliers who supply 60 % of the products sold by the chain. Aldi had revenue of more than HUF 490 billion last year, company records show.
Two of Hungary’s favourite retail chains, Rossmann and Pepco, are set to open new stores this spring, bringing convenience and variety to shoppers in a rapidly developing area of Miskolc. The new locations will offer everything from cosmetics and household goods to clothing and home decor, meeting the growing demand for accessible retail options outside the city center.
Exciting news for residents of Miskolc’s iconic Diósgyőr district! Renowned retail chains Rossmann and Pepco will open new stores on Kiss Ernő Street by late February or early March, creating what could be dubbed a local shopping centre, BOON reports. The development follows significant demand for such outlets in the area.
While Miskolc already boasts several Rossmann and Pepco locations, Diósgyőr and nearby neighbourhoods like Kilián and Bulgárföld lacked easy access to these retailers. Until now, locals had to travel to the city centre for household essentials, clothing, or beauty products.
The new Rossmann store will offer a wide range of cosmetics, personal care items, and household goods. Meanwhile, Pepco will cater to budget-conscious shoppers with clothing, home accessories, and kitchenware. Residents are particularly excited about Pepco, as no similar store previously operated in the area.
Locals’ concerns about the new stores
Despite the enthusiasm, some locals have raised concerns about traffic management around the new stores, noting challenges with access and parking. Construction on the site began last July, and while job postings for the stores haven’t been announced yet, they are expected in the coming weeks.
Hungary’s Indotek Group has closed the acquisition of a 47% stake in Auchan Magyarország and will take over operative management of the retail chain, the commercial real estate company, majority-owned by Dániel Jellinek, said on Wednesday.
With 19 hypermarkets and five supermarkets with a combined area of over 250,000 sqm, Auchan Magyarország controls around 6.8% of Hungary’s retail market. It also operates 19 petrol stations. Auchan Magyarország had a revenue of HUF 460 billion (EUR 1.11 billion) last year. It employs around 6,000 people.
Indotek Group operates more than 50 shopping centres and retail properties in Hungary and abroad.
The Group has agreed to acquire Ceetrus Hungary and Nhood Services Hungary to make it the sole owner of smaller storefronts at Auchan Magyarország’s locations. That transaction is in the process of closing.
German-owned supermarket chain Lidl Magyarország plans to raise its number of stores from 210 to 250 in the coming years, chairman Zita Szlavikovics said on Friday, marking 20 years in Hungary.
With a nationwide reach, Lidl had 20.8pc market share in September, according to data from GfK, Szlavikovics said. The chain employs 9,500 people and exported EUR 338m of local products to its other Lidl stores last year, she added.
Lidl Magyarország has 487 domestic suppliers accounting for 61pc of inventory, managing director for purchasing Zoltán Nepp said.
Photo: facebook.com/LidlMagyarorszag
Lidl Magyarország had net sales revenue of HUF 1,159bn in its business year ended February 29, public records show.
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The Hungarian government is considering new measures to reduce the growing influence of foreign retailers like Temu, as it seeks to encourage citizens to spend more at domestic businesses. These efforts are part of a broader push to keep more consumer spending within Hungary and to support the local economy, which has been impacted by the rise of online shopping and cross-border purchases.
Márton Nagy, Minister of Economic Development, hinted at the potential for administrative intervention during an interview with InfoRádió and a recent speech covered by Portfolio. He outlined the government’s concerns over increasing consumer reliance on foreign-owned retailers, both online and offline.
Shopping tourism surges, government concerned
According to a G7 article, the Hungarian government seems to have recently recognised a growing trend, driven by consumer data: more Hungarians are shopping either abroad or with foreign-owned companies operating within the country—a development the government finds concerning. Shopping tourism has surged near Hungary’s borders due to significant and persistent price differences, with many Hungarians regularly purchasing groceries from neighbouring countries.
The Hungarian government is considering new measures to reduce the growing influence of foreign retailers like Temu. Photo: Daily News Hungary
Online shopping and service sectors are also seeing a rise in foreign companies, such as Temu and Netflix, which are not traditionally established in Hungary. It seems that Hungarians started to prefer shopping for various items from Temu due to the fact that products that are almost identical to those they can get on the Chinese online webshop are sold by Hungarian retailers at several times the price of Temu. Despite fewer Hungarians travelling abroad, the amount they spend while abroad has increased, signalling that wealthier individuals are opting for more luxurious vacations.
All these factors result in money flowing out of Hungary, which doesn’t help stimulate the domestic economy—a point of frustration for the government. In both online and offline retail, the market is dominated by foreign-owned companies. In online retail, local businesses were pushed back years ago by regional competitors like Czech and Romanian firms, while offline, the largest chains are controlled by German, Austrian, and British multinationals.
Lots of Hungarian money flowing out of Hungary
Photo: depositphotos.com
The Chinese platform Temu has further disrupted the market, rapidly gaining a foothold, despite an ongoing investigation by the Hungarian Competition Authority (GVH).
Since 2010, Prime Minister Viktor Orbán’s government has introduced several policy changes aimed at favoring Hungarian-owned businesses, including closing shops on Sundays, imposing special taxes, and halting the construction of large malls. However, these measures have failed to reverse the dominance of foreign retailers. In fact, the increasing burden on the retail sector, along with high VAT, may be one of the reasons why shopping tourism has grown.
As reported by Telex, in 2023, Hungarians used their bank cards to make online purchases worth HUF 1,888 billion (EUR 4.78 billion) from foreign websites. Based on this year’s first-quarter growth rate, that figure is expected to reach HUF 2,400 billion (EUR 6 billion) by the end of 2024.
Last year’s figure accounted for about 10% of Hungary’s retail market, and this year it could rise to 12%. Notably, these numbers do not include Hungarians who use foreign bank cards for purchases abroad.
Additional taxes, further obligations?
Márton Nagy aims to create a level playing field by ensuring that foreign retailers selling to Hungarian consumers face the same tax obligations as domestic companies. This would likely involve imposing additional taxes on cross-border online retailers, which currently do not pay corporate taxes in Hungary. However, Hungarian e-commerce companies selling abroad also benefit from similar exemptions, though they cannot leverage them as effectively.
As for Temu, while it may be subject to increased taxes, it seems unlikely that the government will be able to halt the broader trend of international online commerce. What makes the situation even more complicated is that China is one of Hungary’s top partners in trade: thus, sanctioning a Chinese company merely due to its success on the market would not be an ideal move.
SPAR remains incensed by the Hungarian government’s introduction of an additional retail tax—often referred to as an “excess profit” tax—following the fourth consecutive landslide victory of Prime Minister Viktor Orbán and his co-ruling Fidesz and KDNP coalition in 2022. SPAR is urging the European Commission to initiate another infringement procedure against Hungary and has emphasised that the company will undertake improvements if the government removes this additional financial burden.
SPAR presses for an infringement procedure against Hungary
We have reported on several occasions that the Hungarian state budget is grappling with serious financial challenges due to reduced consumer spending in the aftermath of COVID-19, the war in Ukraine, and the inflation crisis. In response, the government introduced several extra taxes, including what they term the “excess profit tax”. In theory, retail chains are required to pay an additional 4.5% tax, but in practice, this cost is often passed on to consumers. According to the supermarket franchise, this results in a EUR 90 million shortfall each year, preventing them from initiating development projects in Hungary, even though the market urgently requires investments in logistics.
As reported by economx.hu, the retail chain continues to lobby the European Commission. The company is pushing for the Commission in Brussels to initiate another infringement procedure against Hungary over the excess profit tax. This information was reported on Friday by Lebensmittel Zeitung, a German publication specialising in the food market. SPAR has stated that if the government were to abolish this additional tax, the company would begin investing in Hungary, which is their largest foreign market.
Spar. Photo: Daily News Hungary
SPAR’s CEO, Hans Reisch, has indicated that the company faces significant logistical challenges in Hungary, necessitating investment to remain competitive. However, their revenues are currently in the negative, largely due to government-imposed food price caps and the additional tax. We previously reported that SPAR restructured its operations in Hungary to shield itself from business circles close to Orbán. Property and building management, as well as retail and logistics rights, have been transferred from their Hungarian subsidiary to their Swiss company. Additionally, their supermarket operations have been attached to their Austrian company, allowing them to save EUR 10 million per year.
Hungarian minister slammed SPAR
Ahead of the European Parliamentary elections on 9 June, the European Commission had yet to decide on SPAR’s call for an infringement procedure. Nevertheless, CEO Reisch continues to push for action, despite a 2020 ruling by the European Court of Justice stating that progressive extra taxes are not illegal within the European Union.
The first clash between the Hungarian government and SPAR occurred this spring. The Austrian CEO criticised the Hungarian government’s tax policies, prompting János Lázár. Minister of Construction and Development—widely believed to represent Orbán’s views on such matters—to respond by calling SPAR an “Austrian grocer”. He added that multinational companies should learn to respect Hungarian consumers and the government.
Photo: FB/János Lázár
A new trade policy strategy in the making?
Dániel Molnár, a senior analyst at the Makronóm Institute, commented that SPAR is no longer competitive in the Hungarian market due to high prices and an outdated business model. Csaba Bubenkó, president of the modern trade union Egyenlő.hu, remarked that SPAR should not treat the Hungarian retail sector as a “flea market”. He argued that it has been profitable for multinational companies to operate in Hungary, given that they generate substantial profits, have opened thousands of stores, and have sometimes acted against the interests of Hungarian companies. Moreover, they have failed to pay competitive wages and have sold lower-quality food products than those available in Western markets, resulting in immense profits.
Photo credit: Daily News Hungary
Economx.hu also consulted other market players who expressed dissatisfaction with the excess profit tax. However, they clarified that SPAR’s attacks in the foreign press are undermining their efforts and are calling for a new trade policy strategy in Hungary. They added that SPAR is provoking the Hungarian government and turning a taxation issue into a political one.
The authorities have launched an investigation into retail chains that have made parallel and big price increases for basic food produce, the national economy ministry said on Wednesday.
The price increases fly in the face of government-mandated food price caps and promotions on certain products which have been subject to an online price monitoring system from June 1, 2023, the ministrysaid in a statement.
Big retail chains upped retail prices for fine flour, 2.8 percent UHT milk and sugar, among others, the statement said, with instances of a doubling of the price of certain flours. Some milk brands increased by an average of about 45 percent, while the price of granulated sugar went up by more than 25 percent on average, it added.
Photo: Daily News Hungary
Whereas as these measures have been largely effective in pushing down inflation, competition office (GVH), has so far scrutinised 3,000 retailers and imposed fines amounting to 650 million forints.
The ministry said it is committed to protecting Hungarian families and has asked to competition office and the ministry’s own consumer protection department to take further joint action against unfair businesses.
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Sad news: food prices in Hungary exceed EU average – details in THISarticle
Government efforts fall short as Hungary faces sharp rise in food prices – read more HERE
In mid-July, the long-standing store of Hungary’s second-largest retail chain, SPAR, will permanently close its doors in a major rural city. Rumours are spreading that the Russian chain Mere might take over the location. However, the city of 70,000 will not be left without a SPAR presence.
Last week, the business publication Világgazdaság reported that Hungary’s first Mere store might open in Budapest’s IV district, possibly in a former SPAR location. Now, a similar scenario is unfolding in Szolnok, the county seat of Jász-Nagykun-Szolnok County.
The discount chain in Serbia. Photo: Depositphotos.com
Details of the closure
The news of the SPAR store closure in Szolnok first appeared on social media and was later confirmed by local media, including Szol24. Despite SPAR’s popularity and expansion in Hungary, the central city store in the Pelikán Shopping Center will close on 14 July at 2 PM.
Even with this closure, Szolnok will still have other SPAR outlets nearby and an Interspar as well, Világgazdaság writes. SPAR Hungary operates 641 units nationwide with over 17,000 employees, making it a significant employer. In 2023, SPAR invested in new store openings and renovations.
Source: spar.hu
Reasons for the closure and employee impact
Világgazdaság contacted SPAR Hungary for details on the closure. SPAR’s Communications Director, Márk Maczelka, explained that annual performance reviews sometimes lead to store closures for cost rationalisation. This year’s review indicated that the SPAR supermarket at 15 Ady Endre Street in Szolnok could not be operated profitably, leading to its closure on 14 July 2024.
Maczelka emphasised appreciation for the staff’s efforts and mentioned that most affected employees were offered positions in other stores. Those unable to accept new roles would receive benefits according to their tenure and the collective agreement.
Potential Mere store opening
The Russian MERE discount chain. Photo: mere.ws
Rumours suggest that the Russian Mere might open a store in the soon-to-be-vacant location in the Pelikán Shopping Center. While the centre’s management neither confirmed nor denied this, they stated that discussions with several interested parties are ongoing. It is confirmed that a new grocery store will eventually occupy the ground floor, but the specific chain remains uncertain. SPAR Hungary did not comment on potential new store openings by other chains.
According to Szol24, in Budapest, the Russian supermarket chain is expanding on the site of the SPAR stores that are closing, and its main attraction is its extremely low price. In addition to being cheap, the Russian supermarket is also special because they don’t put anything on the shelves but they simply offer a selection of pallets and boxes for the customer.
As part of its global growth strategy, Turkish fashion brand Koton is set to open eight new stores in Hungary. Operation is expected to start this year.
As Portfolio reports, these stores will be located in properties managed by Adventum, with operations expected to commence in 2024. The signing ceremony took place in Istanbul, attended by Koton CEO A. Bülent Sabuncu and Adventum Group Founding Partner Kristóf Bárány, according to the company announcement.
Fashion brand Koton comes to Hungary
Koton’s medium-term plans include opening 130-150 new stores worldwide, focusing primarily on international markets. The first of these stores will launch in the last quarter of 2024, all situated in shopping malls.
Three of these stores will be in Budapest, with others located in Sopron, Debrecen, Szeged, and Székesfehérvár.
The total retail space will exceed 6000 square meters, with the largest store being in Köki Shopping Center, occupying approximately 1000 square meters.
Kristóf Bárány emphasised, “Koton is one of Turkey’s largest fashion brands. We are delighted to support their expansion into Hungary.”
The Adventum Group manages over 700,000 square meters of commercial real estate in Central and Eastern Europe.
Last year, the Hungarian government promised to abolish the “excess profit tax” on banks, multinationals and energy companies in 2024. However, instead of doing so, it is now imposing a new excess profit tax on these companies. In addition to the transaction tax, the government is imposing extra charges on foreign exchange transactions.
Multinationals to have an even harder time in Hungary
During Monday morning’s Cabinet Briefing, Gergely Gulyás, the minister in charge of the Prime Minister’s Office, said that
a “defence contribution” will have to be paid to multinationals that made “excess profits” during the war.
The same applies to the banking sector and energy companies, Economx reports.
The government negotiated a reduction of the bank tax, but according to Gulyás, many financial institutions took advantage of a loophole in the purchase of government securities, with all banks that did not increase their total holdings of government securities having to pay the bank tax in full.
In effect, the measure means that the government will not eliminate the special taxes on multinationals, banks and energy companies. What is more, it will impose extra charges on foreign exchange transactions in addition to the transaction tax.
Budget deficit reaches HUF 2,656.4 billion at end-June
Hungary’s cash flow-based budget deficit reached HUF 2,656.4 billion (EUR 6.8 billion) at the end of June, the finance ministry said in a preliminary release of data on Monday.
The central budget had a 2,640.1 billion forint deficit at the end of the month and the social security funds were 161.9 billion in the red, but separate state funds were 145.6 billion forints in the black.
The budget deficit reached 107.8 billion forints for the month of June alone.
Interest expenditures, which included large payments on retail government securities, came to 2,009.5 billion forints in January-June, up 649.4 billion from the same period a year earlier, the ministry said.
Expenditures for European Union-funded programmes reached 945.7 billion forints, while transfers from Brussels came to 578.2 billion forints, the ministry said.
Hungary’s trade balance in May posted a surplus of 1.146 billion euros, narrowing from 1.750 billion in April, the Central Statistical Office (KSH) said on Friday in a first reading of data.
Export and import fall
Exports fell by an annual 8.8 percent to 11.922 billion euros, while imports dropped by 9.0 percent to 10.776 billion.
In the January-May period, Hungary posted a trade surplus of 6.739 billion euros, with exports down 4.9 percent to 60.945 billion euros and imports 11.6 percent lower at 54.406 billion.
May industrial output falls
Hungarian industrial output in May fell by an unadjusted 5.2 percent, KSH said.
Adjusted for the number of working days, output fell by 4.9 percent.
Output of most manufacturing sector branches fell, KSH said. Among the biggest segments, output of the automotive, the electrical equipment, and the computer, electronics and optical equipment segments dropped, while output of the food, drink and tobacco segment grew from a year earlier, it added.
Month on month, output was down 1.1 percent based on seasonally and working day-adjusted data.
In the January-May period, industrial output declined by an annual 2.4 percent.
May retail sales up
Retail sales in Hungary grew by an annual 3.6 percent in May, down from 3.7 percent in April, KSH said.
Adjusted for calendar-year effects, the May figure was 3.6 percent higher.
Adjusted food sales grew by 6.3 percent, non-food sales by 1.8 percent, while vehicle fuel sales eased by 0.7 percent.
Month on month, sales edged up 0.1 percent, adjusted for seasonal and calendar-year effects.
In the January-May period, retail sales rose by an unadjusted 3.3 percent and an adjusted 2.7 percent from the same period a year earlier.
The Russian discount chain Mere will soon open its first store in Hungary. According to the latest reports, the exact location of this first store has been confirmed.
On 1 April, news broke that Mere was planning to enter the local market with detailed investment plans, as we previously reported. The ambitious goal was to open twenty stores in Budapest within a year and expand to 200 stores within three years. These targets seemed optimistic, considering that it took Lidl around 15 years to reach a similar scale in Hungary. Mere’s plans also raised doubts as the company had not previously engaged with government or industry stakeholders.
Now the Russian chain is preparing to open its first store, as confirmed by Újpesti Szemle, which reported that the store will open in Újpest, specifically in Káposztásmegyer.
According to their information, the new store will be established on the site of a recently closed Spar supermarket. This site has been vacant for some time, so the opening of the new shop will not only benefit shoppers but also the local community by creating new jobs and contributing to the area’s economic development. Mere is expected to open in the second half of the year and hopes to quickly become a popular shopping destination for locals.
Initial reports indicate that they are also renting properties in Vác and Szeged, writes Világgazdaság. If everything proceeds according to schedule without further delays, these stores could open by the end of 2024.
Several Mere stores set to open in Hungary
The discount chain in Serbia. Photo: Depositphotos.com
The chain has become known in Russia and many other European countries for its extremely low prices and simple business model. However, the success of its expansion in Hungary remains uncertain. For now, Mere plans to set up a total of 15 stores in Hungary in three phases.
Moreover, Mere is basing its success on how these stores are received by domestic customers. Therefore, there is no fixed timeline for achieving their business goals. Initially, they will operate in Budapest and its surrounding areas, followed by larger cities and eventually smaller towns.
Világgazdaság also reports that their source, who is familiar with Mere’s strategy in Hungary, pointed out that the long-term goal is to create a network of up to 100 Mere stores over the next 5-10 years.
The chain will reportedly introduce a new retail model in Hungary, distinct from Lidl or Aldi. The stores will be less convenient, primarily accessible by car, but offer prices up to 30% lower by maintaining a slim 15% profit margin compared to the usual 45-60% in retail.
Before the COVID-19 pandemic, which delayed the initiative, the Russian chain’s entry into Hungary had already been planned. The project was revived in the second half of 2023. The company currently employs around 20 people responsible for opening stores, administration, and procurement.
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Russian retail chain Mere to open in Hungary: Locations, timelines, products – Read here
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The Russian retail chain Mere is set to launch in Hungary, with preparations well underway for the opening of its first store. Although there are numerous uncertainties, Mere’s entry could pose a significant challenge to established discount giants like Lidl and Aldi.
According to market sources cited by Világgazdaság, Mere’s plans to enter the Hungarian market are genuine, and the company is actively preparing for its initial store openings. The question remains whether these efforts will culminate in successful store launches, but the commitment is evident.
Mere’s news originally met with scepticism
Photo: mere.ws
On 1 April, Hungarian media widely reported that the Russian discount chain Mere planned to enter the local market, with detailed investment plans. The ambitious goal was to open twenty stores in Budapest and its suburbs within a year and expand to 200 stores within three years, achieving a turnover of EUR 700 million. These figures seemed optimistic, considering that it took Lidl around 15 years to reach a similar scale in Hungary. Mere’s plans also raised doubts as the company had not previously engaged with government or industry stakeholders.
However, new credible information confirms Mere’s serious intent to expand in Hungary, with advanced negotiations for specific store locations. Despite the challenges, the Russian chain aims to establish 15 stores in Hungary over three phases, each phase comprising five stores. The company’s strategy will be to monitor customer reception before further expansion, initially targeting Budapest and its surrounding areas, followed by major cities and eventually smaller towns.
The Russian chain’s entry into Hungary had been planned before the COVID-19 pandemic, which delayed the initiative. The project was revived in the second half of 2023. Currently, the company employs around twenty people responsible for store openings, administration, and procurement. Their progress in securing supplies has been notable, despite operating under modest conditions.
The founders anticipated a smooth entry into the Hungarian market, similar to their experience in Serbia, but they misjudged the complexities. The planned opening dates have been postponed multiple times, with the latest target being the end of May. Despite these setbacks, Mere is determined to succeed and does not intend to abandon its plans.
When and where will the chain open its first store?
Photo: mere.ws
According to Világgazdaság, preparations are ongoing on two fronts:
Regulatory Approval: Mere is finalising a substantial documentation package required for store opening permits. Due to the “plaza stop” regulation, exemptions must be granted by the Hajdú-Bihar County Government Office, which oversees larger commercial building projects. A decision on Mere’s permit could be made by the end of summer.
Lease Negotiations: Mere is negotiating leases for existing properties rather than constructing new buildings. They are seeking large, cost-effective warehouses around 1,000 square meters, suitable for their pallet-based inventory. Progress has been slow but steady, with near-finalised lease agreements for locations in Budapest’s 4th district (Újpest), Vác, and Szeged. If all goes as planned, the first Mere store in Újpest could open by late 2024, pending necessary permits.
What will they sell in Hungary?
The discount chain in Serbia. Photo: depositphotos.com
The chain will introduce a new retail model in Hungary, distinct from Lidl or Aldi. The stores will be less convenient, primarily accessible by car, but offer prices up to 30% lower by maintaining a slim 15% profit margin compared to the usual 45-60% in retail.
Regarding product offerings, Mere will not stock international items like Latvian salmon, Lithuanian sausage, or Polish sunflower oil that have appeared in Western European outlets. Instead, the Hungarian stores will feature around 500 products, with 80% sourced from well-established Hungarian suppliers. The remaining products will likely come from local producers who have not yet penetrated major retail chains.
The discount chain’s business model is designed to appeal to Hungary’s price-sensitive consumers. However, to compete effectively with Lidl and Aldi, Mere will need to operate reliably and expand steadily. Whether they can achieve this remains to be seen.
You can purchase products made in Hungary for a much lower price in Romanian stores, for half or even a third of the price in Hungary. The reason is not too simple, as inflation in Romania is similar to that in Hungary, but for some, taking a trip to do their weekly or monthly shopping is still worth it.
Customers are willing to travel to spend less on groceries
According to Telex, Romania is also affected by inflation. Especially sugared products have become more expensive on the other side of the border, but they are still cheaper than in Hungary and the selection is wider. Many also claim that the quality of the products available in Romania is better. For example, many Hungarian customers specifically hunt for Hungarian products in the stores of a Romanian city close to the border, Nagykároly (Carei), because strangely, they are available to purchase for much cheaper, in some cases even for half the original price.
As the number of people intrigued by the promise of a good deal increased, a new Facebook group was created by Levente Lintényi, to collect information on the stores and prices. He states that today, it has 9000 members, growing rapidly, by 2000-3000 members a week. He wanted to help others who also wanted to save some money, as it is absurd that a product which is made 20 kilometres away from his hometown in Hungary is much cheaper to buy in Romania. For example, a sausage produced in Hungary costs RON 24.49 (EUR 4.92) in Romania. In Hungary, it would be HUF 4,389 (EUR 11.39).
Why are Romanian stores cheaper?
Photo: depositphotos.com
In Romania, the VAT levied on staple foods is only 9 percent, while in Hungary, it is 27 percent. Most customers do their shopping at the beginning of the month after they get paid, as Lintényi said, some of the members of the Facebook group summarise their savings in spreadsheets, or give each other advice to help in any way they can. Petrol is also cheaper in Romania, so the ones who refuel might save some more money.
Many people believe that the products sold in Romania are of better quality, although it used to be the other way around. It needs to be added that not everything is cheaper in Romania, although sales are more significant. Now, shopping lists include washing capsules, pasta, oil, meat, cider, flavoured beers, children’s snacks, fruits and vegetables, rice, and frozen pastries. Some even buy children’s clothes in Romania.
Other popular destinations in bordering countries
As we previously reported, it is not a new sensation for Hungarians who live close to the border to do their shopping in a neighbouring country. However, the number of people to do so in the last couple of months has increased, and Slovakia is becoming a popular destination as well. Hungarian customers have been willing to travel more to shop in a neighbouring country recently. Based on several reports, Komarno is becoming a favourite destination among customers even for those who live more than a hundred kilometres away from the Slovakian border.
This also means that these shops might take the revenue of the ones located in Hungary. Kaufland might be the biggest winner of these purchases, as it is one of the most popular ones, with the fact that the chain doesn’t operate a store in Hungary. Stores like Lidl and Tesco are also popular, even though their products are available in Hungary.
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Unstaffed shops in Hungary: Here is how we can shop in these hybrid stores – Read here
As reported by Daily News Hungary before, soon, the first so-called hybrid/unstaffed shops will be launched in Hungary. These stores will be open during the day in the traditional way, meaning there will be staff working in the store, and outside normal opening hours, in an unstaffed mode. Here is what we know so far about these places.
Photo: depositphotos.com
Details of unstaffed shops announced at Laurel conference
According to turizmus.com, details of the technical conditions and how this form of service can be used were announced at the retail conference of Laurel Ltd., the developer of the solution in Hungary, on 15 May.
“In order to use the new type of shops, we will need an application, which we will download and provide our personal data, supported by a photo ID,”
Attila Bessenyei, CEO of Laurel, said at the event.
We will need an app to shop in these stores
Photo: depositphotos.com
Based on this, the app on your smartphone generates a single-use QR code, which you can use to enter the store and shop as usual, simply adding the items you want to your basket, he added.
In the unstaffed mode, payment is made at the self-service checkouts. There, you also have to scan the QR code that identifies you, just as you cannot exit the store without scanning the receipt you have received.
“So everyone who is in an unstaffed shop is identified in advance, but there is also a complex system to ensure security,”
Bessenyei said. For example, the camera images of such unstaffed shops are monitored by an artificial intelligence-based algorithm that detects suspicious, unusual customer movements and immediately alerts the remote surveillance.
Remote security officer ready to help
The remote security officer, who monitors several unstaffed shops at the same time, can intervene, as they are not only in video but also in voice contact with the shop. Thus, they are available to help shoppers if they need assistance. The system also handles alcoholic beverages automatically, as in unstaffed mode, only adults are allowed to enter the shop by default.
Bessenyei added that it is important to note that the solution can be adapted to existing shops with a floor area of up to 3-500 m2. The system has already been successfully introduced in the Czech Republic, for example, and is an excellent transition between permanently unstaffed and traditional shops.
The launch is currently in advanced negotiations with 4-5 chains in the capital and the countryside. Right now, it looks like the first of these hybrid stores will open in the countryside, turizmus.com writes.
After the changeover, the shop can be open 24/7, and can generate significant revenue during less busy periods when it is not worth keeping staff on duty. Based on examples in the Czech Republic, 10-20% of turnover can be generated during unstaffed hours and the shop does not even need to be in a prime location.
It is not a new sensation for Hungarians who live close to the border to do their shopping in a neighbouring country. However, the number of people to do so in the last couple of months has increased, and Slovakia is becoming a popular destination.
Hungarian customers go abroad to shop
According to telex.hu, Hungarian customers have been willing to travel more to shop in a neighbouring country recently. Based on a report by G7, Komarno is becoming a favourite destination among customers even for those who live more than a hundred kilometres away from the Slovakian border.
Based on a Facebook group, created by István Honyavecz to help others who also like shopping abroad, more and more people are becoming interested in the activity. He told G7 that he was genuinely surprised by the amount of Hungarian customers who joined his group. The group has people from cities such as Dunaújváros or Székesfehérvár too, even though they live much further, towards the middle of Transdanubia.
This means that these shops might take the revenue of the ones located in Hungary. Kaufland might be the biggest winner of these purchases, as it is one of the most popular ones, with the fact that the chain doesn’t operate a store in Hungary. Stores like Lidl and Tesco are also popular, even though their products are available in Hungary.
Is travelling for a product worth it?
Shashank Verma/ Unsplash
The reason behind the phenomenon might be the prices, as the sales in Slovakia are greater. For example, a pack of cigarettes costs HUF 500-600 (EUR 1,3-1,55) less than it does in Hungary. This means that the cost of travelling 200 kilometres for a product pays off by purchasing approximately 12-15 packs of them. There are Hungarian customers who use public transport, as the country pass makes travelling much cheaper.
Along with the more friendly prices and the more accessible coupons, the friendliness of the shop assistants is also a key factor. In many cases, to access sales, the customer needs to be a citizen of the given country, but that doesn’t seem to be an issue.
Most Hungarian customers are convinced that the products of the Slovakian stores have better quality, therefore they are willing to pay more.
Kaufland is one of the most popular destinations
Illustration: Unsplash / Markus Spiske
Kaufland being the most popular is just partly due to its friendly prices, as the act of going abroad, often accompanied by a family, is a great experience in itself. In many cases, Hungarian customers also look for products that taste different to the ones they can purchase in Hungary, together with the different atmosphere of the store, which is also inviting.
Even though the number of the Facebook group has increased, it is nearly impossible to compare the Hungarian and the Slovakian sales, as they are changing weekly or more often. The on-sale products are also different, for instance, we cannot compare two different types of fruit when it comes to their price. The exchange rate is also a defining factor, as people usually don’t calculate their expenses beforehand, especially when they pay by card.
Good news for all Aldi-goers: the German retail company’s biggest store in Hungary will open in a deserted mall in Budapest’s heart. Here is a visual of how it will look.
Housing complexes, one after the other
The new Aldi store will be on the Kondorosi Street in Budapest’s 11th district. The new owner planned to build a new housing complex there, but the local government banned that. That is when Aldi decided to create Hungary’s biggest store there.
The local government of Újbuda believed there were too many housing complexes in the area. The Kondorosi complex is near the future Aldi, while the Budai Walzer gated community is on the other side of Kondorosi Street. Therefore, the mayor and the representatives were convinced another housing complex would make the area too crowded.
The biggest Aldi store in Hungary
As a result, the local government issued a ban on changes in December.
The building is now a bit deserted because all the companies moved away, including a car wash, a Reál food store and a car parts store. Local representative Attila Erhardt shared a post this week that a new Aldi store will open there. Therefore, the local government erased the ban on changes on Thursday.
Attila Pákolicz, the CEO of Aldi’s Hungarian media company, confirmed the opening of the new store. He added it would be the biggest store in Hungary concerning the sales space. Furthermore, the building will allow other shops and stores to settle there like before.
The company added Aldi hoped they could open their new store this year in the 11th district.
