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Dissatisfaction over prices in Croatia ignites retailer boycotts

by Agence France-Presse - AFP

ZAGREB, CROATIA Jan 30, 2025 - 12:52 pm GMT+3
This picture shows a customer in a shopping mall during a nationwide shopping boycott to protest rising food prices and biting inflation, Zagreb, Croatia, Jan. 24, 2025. (AFP Photo)
This picture shows a customer in a shopping mall during a nationwide shopping boycott to protest rising food prices and biting inflation, Zagreb, Croatia, Jan. 24, 2025. (AFP Photo)
by Agence France-Presse - AFP Jan 30, 2025 12:52 pm

Fed up with paying higher prices at grocery stores and shopping outlets, Croatians have begun turning their dissatisfaction into a boycott targeting retailers that show signs of spreading across the Balkans.

What began with a call online by consumer advocacy groups to boycott stores for a single day resulted in a more than 50% plunge in sales across Croatia last Friday.

"Croatia has called for a halt," leading consumer advocate Josip Kelemen, who helped organize the boycott, told reporters as he issued a call for a new boycott.

"This time, the voice of consumers will be even louder."

His advocacy organization is now calling for a more ambitious protest by targeting three large retail chains – Eurospin, Lidl and DM – for a one-week boycott starting on Thursday over alleged price discrepancies with other EU countries.

The boycott will also target Coca-Cola and other carbonated drinks, along with bottled water and detergents.

Croatians were also urged to avoid deliveries, banks, restaurants and cafes this Friday, along with shopping online, paying bills,or buying fuel for a day-long protest.

Biting inflation

The protests come after average food prices soared by more than 30% in the past three years, according to official figures, while prices for basic items like eggs or bread have jumped by nearly 60% and 50%, respectively.

Economists, however, say retailers do not shoulder most of the blame for the rise in prices.

Decades of declining agricultural production, an influx of imports and the economy's overreliance on tourism along with a bloated public sector, chronic labor shortages and a high value-added tax (VAT) of 25% have fuelled much of the inflation.

Food commodity "deficits are huge, several billion euros of food is imported. This is not the case with other tourist countries, like Spain. They are able to feed tourists," said economist Damir Novotny.

Despite the economic complexities, public perception has increasingly homed in on retailers, with social media posts showing Croatians the prices for the same products abroad – with vast differences.

Consumer groups have highlighted the price of a German brand of shampoo that costs 3.35 euros ($3.50) in Croatia – which they say is 130% more than its price in Germany.

In Bulgaria, the price of a bottle of shampoo at the same retail chain is around 20% lower than in Croatia.

Consumers also point to the cost of domestic products that are cheaper abroad, where average wages are higher.

One kilogram of a popular Croatia-made seasoning costs 7.69 euros locally compared to 6.35 euros at a Swedish discount grocery chain, according to data published by portal Index.hr.

Spillover

However, anger is not only directed at retailers, but the public's ire is also turning on the government.

"I boycotted last Friday and will do it again," Marko Knezevic, a repairman in the capital Zagreb, told Agence France-Presse (AFP).

"It's also a message to the authorities since their policies over the years led to all this – we destroyed production, but public administration is flourishing."

Others have begun crossing the border to nearby Slovenia and Italy in search of cheaper goods.

Dubravka, a 45-year-old caregiver, said she planned to start traveling to Slovenia once a month to help make ends meet.

"The worst is to pay and remain silent," she said.

"Even if I don't pay less for some items, I will leave the tax money (in Slovenia), so in a way, I will be boycotting the government."

Following the success of last week's boycott, similar calls are growing across the Balkans, with social media posts in Bosnia-Herzegovina, Montenegro, North Macedonia and Serbia imploring shoppers to stay home this Friday.

"After the success of the same campaign in Croatia ... we see no reason why we shouldn't try the same," said one message posted online in Serbia, where advocacy groups have targeted five of the largest grocery chains in Friday's boycott.

The call comes just a week after a general strike in Serbia, where the government is under increasing pressure from an unrelenting anti-corruption protest movement sparked by the fatal collapse of a train station roof in November.

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  • Last Update: Jan 30, 2025 3:50 pm
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