Retailers in Croatia lose over €80 million as boycott continues

Spar – Zagreb 

Retailers in Croatia have lost more than €80 million in the past two weeks as consumers continue to boycott shops in protest against rising prices.

Consumer frustration over increasing costs led to the third nationwide organised boycott on Friday, with noticeably emptier stores, fewer shoppers, and quiet cafes nearby.

Significant Drop in Spending

Organisers estimate that the €80 million loss accounts for 2% of the annual revenue of Croatia’s ten largest retail chains, HRT reported.

Despite this, retailers have not significantly lowered prices, instead offering selective discounts and promotions, which have not satisfied consumers.

Economic analysts suggest that price hikes are not solely due to retailers but also high VAT rates on food and Croatia’s reliance on imported agricultural products.

However, consumers argue that they are bearing the brunt of these economic issues and are determined to take a stand.

Growing Consumer Awareness

Josip Kelemen from the consumer association “Halo Inspektore” confirmed that the boycott is having an impact.

“This is a clear message that consumers are outraged. The aim is to pressure businesses and authorities to address soaring prices and help curb inflation. Consumers are now more conscious of their spending and are making more deliberate choices,” Kelemen told HRT.

He noted that many retailers have responded by blaming external factors rather than lowering prices, which has only fuelled public frustration.

Kelemen avoided directly blaming any one party but stressed that consumers ultimately see the final prices on store shelves.

“Institutions have only recently started to act, limiting the prices of 70 essential products. But that barely scratches the surface when thousands of other products remain unaffected,” he concluded.

Tax Data Confirms Reduced Spending

The Croatian Tax Administration released new data showing a decline in consumer spending. Compared to a regular shopping day before the boycott, the number of retail transactions this past Friday was down by 15%, and the total revenue dropped by 20%.

Retailers remain under pressure as consumers show no signs of backing down. With further boycotts on the table, it remains to be seen whether businesses will take stronger action to address the concerns of Croatian shoppers.