On the official website of HRT, with the day of the official start of the election campaign for the President of the Republic of Croatia on December 11, 2024, a clip from the evening diary was broadcast, in which the candidate of the MOST party, Miro Bulj, states: “I cannot accept that retail chains have the highest profit. That the more expensive food in Croatia from these foreign retail chains is three times higher than in the countries they come from. That our cashiers have 3 times less salary than in the countries where these retail chains come from” (Source: HRT, 3:00 minutes).
We investigated the above statement and found it to be FALSE.
According to information on Fondovi.hr, part of the statement about how retail chains have the highest profits is generalized and without foundation. The gaming sector has the highest profitability with a share of gross profit of 32.5% in total revenues, while the banking sector follows with 31.2%. So, although retail chains generate high revenues, banks are more profitable when looking at the profit-to-income ratio.
Furthermore, according to Lider’s calculation, which was made as part of the ‘1000 biggest’ contribution, based on data from Fina, the average profit rate of retail chains in Croatia in 2023 is 4.3 percent. Lider calculated the profit rate by dividing gross profit by total revenue, and took into account the 95 largest retail chains in Croatia by revenue. Compared to other sectors, trade – retail is in 39th place in terms of profit rate. The highest rate of profit is achieved by companies in financial intermediation, that is, banks, at 42.6 percent. Therefore, this part of the statement is incorrect.
The part of the statement according to which food prices in foreign retail chains in Croatia are three times higher than in their home countries is also incorrect. According to the analysis of the Croatian National Bank (HNB), the prices of identical products in DM in Croatia are on average 16% higher than in Germany, while compared to Italy, Austria and Slovenia they are lower by 7%, 1.6% and 2, 4%. According to Eurostat data, food prices in Croatia reach 101% of the EU average, while the overall price level is at 76% of the EU average.
It is not possible to determine the accuracy of part of the salary statement, but it is possible to indirectly assess it. On average, salaries in Croatia are approximately 1.5 to 2 times lower than in countries such as Germany or Austria. However, it is important to note that salary differences depend on many factors, including the cost of living, tax systems and general economic conditions in each country.
