GVH drops fine as Spar commits HUF 1.7 bln to helping small suppliers

Retail

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Hungaryʼs competition office GVH said Thursday it canceled a procedure regarding abuse of market power against supermarket chain Spar after the latter announced it would spend HUF 1.7 billion on measures promoting small producersʼ chances to supply the chain, according to a report by state news wire MTI.

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GVH established that Spar in 2014-2015 introduced fees on suppliers similar to those the office had found illegal in 2012. It decided, however, that it will allow Spar to carry out the measures it offered instead of levying a fine on the company considering the "social benefits of the HUF 1.7 bln program that also creates 23 jobs" can exceed the calculated value of a simple fine. 

Spar will set up regional centers for small producers in six cities - in Győr, Hódmezővásárhely, Nyíregyhaza, Pécs, Székesfehervár, and Zalaegerszeg - between November 2021 and November 2022 and operate them until the end of 2023. Spar aims at increasing the sales potential of local small suppliers, through offering logistics and marketing services as well as training among others. It expects to involve 90% new suppliers, about 100 of them in total, in the program that would generate for them an additional annual turnover of about HUF 200 million. 

Spar Magyarország has more than 570 shops in Hungary, including some that operate as franchises. The companyʼs turnover rose 10% last year to HUF 679.6 bln.

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