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9 of the main food products in the consumer basket rose around BGN 8 from the bag to the chain. This is what “Monitor” writes, referring to the weekly bulletin of the State Commission of Exchanges and Commodities Markets (SCSBT) and an inspection in the retail stores.
So, to buy a kilo of sugar, flour, rice, Vitosha yellow cheese, cow cheese, refrigerated chicken, a liter of oil, as well as at least 6 eggs and the largest number of buckets of yogurt, we need an average of BGN 47 .
The most significant is the profit margin on yellow cheese, which comes out at BGN 4.39 / kg or 40.4% more expensive for the end user than for the retailer itself, which supplies it on the commodity exchange. According to data from DKSBT last week (October 12-16), the dairy product was wholesale at BGN 10.86 / kg.
There is also a considerable margin in cow cheese. Whereas on the stock exchanges it cost BGN 7.10 / kg wholesale, in one of the big chains in Bulgaria it was 8.29 BGN / kg or more than one lev, which is 16.7% more.
For a cube of yogurt I count 1.29 BGN in the store, while in the warehouses it is 0.40 BGN less. The margin here is up to 50 percent.
However, the record is rice, whose average retail price is BGN 3.59 / kg or 59 percent higher than at the wholesale warehouse.
Chilled chicken on the stock exchange last week was offered at an average of BGN 3.95 per kilogram. In the store, however, its retail price goes up to BGN 5 / kg or more than 26% more.
The margins for sugar and oil are much lower. According to the online brochures of the large outlets, the sweet crystals are traded at a price of BGN 1.59 / kg, although the trader has paid BGN 1.35 for a package. Sunflower oil from the stock market to the chain was up 0.19 BGN / l or 7.6%.
The lowest margin of only 5.2% is eggs, whose average value in supermarkets is BGN 0.20 per piece or just a penny more than on the stock market. However, the main ingredient for homemade cakes, pies and cakes, flour, jumps around BGN 0.40 from warehouse to store shelves at BGN 1.39 / kg or 39%.
Discounts lurk everywhere
Thanks to clever marketing tricks, the chains are able to attract a significant number of customers despite the margins and the red labels become a magnet for consumers. Retailers are waging an unspoken war on the promotions battlefield, so week after week they “measure” their low prices. A quick review of the weekly discounted brochures shows that prices for household staples such as sugar, rice and flour differ by BGN 0.20 to 0.40 depending on the chain.
Large chains deliver the products to home
In a pandemic, many large chains began delivering products to their customers’ homes. An intermediary between the end users and the physical sites is a native food delivery company. However, there are some conditions, such as the minimum order value.
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