Supermarkets warn that capping prices will doom the sector to profitability problems

Supermarkets consider the measure proposed by the Second Deputy Prime Minister and Minister of Labor “not applicable.” Yolanda Diazto apply Retail trade law to determine the prices of food productsbecause they think it will be “very bad” for the productive sector.

“It is an idea that has been on the table of Vice President Yolanda Diaz since September. It is a law that has been applied on some occasions.” How to determine the one price for masksBut the food sector is very complex and I honestly see it as not viable,” he emphasized Asedas CEO, Ignacio García Magarzoin statements to the RTVE channel “24 hours”, which are compiled by Europa Press.

The director of the supermarket employers’ association, whose partners include Mercadona, Lidl, Coveran or Dea, among others, noted that it would be “very complex” to identify price-limiting products. “The government has made it clear that this will be very bad for the sector. We are one of the world’s leading food producers and major exporters. Setting price limits is likely to convict them of profitability and supply problems Not only for distributors but also for producers.”

When asked if supermarkets would be willing to negotiate a basic shopping basket, García Magarzo explained that food prices “have risen later than the CPI because competition has made the margins of the entire chain support a significant increase in costs.” “The good news is that those factors that drove prices up are declining,” he recalls.

On the other hand, he lamented that there was talk of oligopoly in the distribution sector. “There is not just any, but the competition is much greater than in other European countries, thanks to the fact that there is less concentration and more companies to choose from. In Spain, We have regional chains that carry significant weightboth nationally and internationally, and that 40% of fresh produce trade is in the hands of trade and traditional markets.”

The sector is highly distributed In no way can we talk about oligopoly. Competition authorities have made it clear that there is more competition here and this allows consumer choice and ensures efficient price formation.”

For this reason, the general manager of Asedas points out, what is in Spain is “serious cost problemand that this is “the same food chain that has kept food prices stable for the past 20 years”.

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