Rewe CEO Counters "Knowledge-Free" Price Criticism from Politics

Rewe Austria CEO Marcel Haraszti, in light of the political discussion about the significantly increased food prices in Austria, pointed to the low profit margins of supermarket chains. The average margin, that is, the profit in the food trade, is 1 percent of sales, said the Billa/Bipa group CEO on "oe24.TV".

Rewe CEO calculates: "Only 1 percent profit margin"

Haraszti cited the cost composition of the food retailer: "Two-thirds of the shelf price depend on the purchase prices. They are dictated to us." 13.4 percent of the price on the supermarket shelf would be the personnel costs, 10 percent the logistics and energy costs, and 9.1 percent the value-added tax. The German retail group Rewe includes Billa, Billa Plus, Bipa, Adeg, and Penny in Austria. "We do make a lot of sales, but little is left over. We use the money to invest in Austria," said the Rewe Austria CEO.

According to Statistics Austria, consumer prices for food and non-alcoholic beverages climbed by an average of 5.2 percent in July compared to the same month last year. "Our purchase prices have also increased. Suppliers have higher energy and labor costs," explained the Rewe Austria CEO.

Lawsuit against supermarket chains

The sharply increased food prices in Austria have led to a lively political debate. The Ministry of Social Affairs has initiated a lawsuit via the Association for Consumer Information (VKI) against the market-dominating supermarket chains Spar, Billa, Hofer, and Lidl for allegedly misleading discount advertising. The goal is clear price labeling. WKÖ trade chairman Rainer Trefelik rejected the accusations of the Ministry of Social Affairs.

ÖGB head Wolfgang Katzian is pushing for a food price summit "as soon as possible." Chancellor Christian Stocker (ÖVP) sees the EU as responsible for food prices. He criticized the "Austria surcharge." International food companies demand higher prices from supermarket chains in smaller countries. If the EU does not intervene - the chancellor wants a ban on such practices - Stocker wants a discount on Austria's contributions to the EU budget. SPÖ leader Andreas Babler is also a critic of the "Austria" surcharge. According to his own statements, he has already contacted the EU Commission about this.

(APA/Red)

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