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The global cost of living crisis has impacted many households across Europe and beyond. It is becoming increasingly difficult for people, especially larger families, to meet their basic needs and sustain themselves. While consumers struggle to afford essentials, larger businesses and corporations appear unaffected, choosing to prioritise profit margins over extending a helping hand to struggling consumers. This dynamic continues to frustrate consumers as they are constantly privy to businesses employing tactics such as shrinkflation, while simultaneously continuing to raise the prices of their products.
Recent events that have taken place in Bulgaria serve as a striking illustration of how severe consumer exploitation can get, and how consumers can unite against it. Over the past year, supermarkets in the country have repeatedly increased prices to levels that many describe as exorbitant, leaving Bulgarian workers able to afford basic groceries and gasoline only 7.9 times per month on average. By comparison, consumers in other Eastern European countries such as Romania can afford these essentials 16.7 times per month. This stark contrast has been attributed to profit-driven pricing strategies, with supermarkets reportedly having profit margins of over 30%. For context, typical supermarket chains have an average profit margin of 2.2%. In certain cases, mark-ups on food products have even exceeded 100%, further exacerbating the financial strain on households.
In response to this exploitation, four civil organizations, The Consumers’ Federation, the Affordable and Quality Food Association, “The System is Killing Us” organisation, and the United Pensioners’ Union, have taken a stand. These groups initiated a mass supermarket boycott on February 13th to protest the unfair pricing practices. At a press conference held at the BTA National Press Club, Velizar Enchev, a representative of the movement, highlighted the disparity in pricing between Bulgaria and other European countries. He noted that the same products in the same supermarket chains often cost more in Bulgaria than in Germany or Austria. He directly called for action, declaring: “On February 13th, no one should shop—let’s show retailers that we won’t tolerate their price policies.”
The boycott gained momentum quickly, capturing the attention of over 2 million people on social media, as well as news coverage from multiple outlets. The movement also received support from former ombudsman Maya Manolova, who introduced a bill to set a 10% limit on surcharges for essential products and continues to push for legislative change. Many Bulgarians suspect that supermarkets in the country operate with political backing, allowing such high prices for a share of the profits. This view has further fuelled public outrage and driven citizens to protest against what they see as systemic corruption. Prime Minister Rosen Zhelyazkov’s statement that the government cannot directly interfere with the market has only furthered the question of whether the Government is prioritising corporate interests over the welfare of its citizens.
The boycott on February 13th proved to be a significant success, with supermarket chains in Bulgaria reportedly experiencing a 29% decline in revenue on the day of the protest. Similarly, the boycott has also provided a boost to smaller, local businesses which have reported increased sales as consumers seek alternatives to large supermarket chains. The organisations behind the boycott have suggested they wish to seek a similar outcome to the Croatian protests, which ultimately led to price reductions on 1,000 products. Encouraged by the success so far, further boycotts are being planned, with one already scheduled on February 20th.
Boycotts are not a new strategy for consumers to push back against unfair practices, and while past efforts, such as the Starbucks boycotts in America last year, have seen temporary success. They often fade from public memory, leaving the targeted companies largely unaffected. If the boycotts in Bulgaria are sustained and Bulgarians remain united against the large supermarket chains, there is a chance that they will not only bring about fairer pricing, but potentially pave the way for meaningful legislation that protects Bulgarians from unfair commercial practices, ultimately demonstrating that boycotts can have a meaningful impact.
Edited by Erin Morgan
Image: Shopping in Supermarket, Daniel Orth, 2007 // CC BY-SA 2.0
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