Last year, the retail sector in Serbia achieved its most successful financial performance, with a recorded profit of 1.66 billion euros (194.37 billion dinars), despite facing rising concerns over price-fixing allegations. While the value of retail trade increased, the growth was largely driven by price hikes, as the actual volume of goods sold declined. The Commission for the Protection of Competition launched an investigation after suspicions arose that the largest retail chains, including Delhaize, Mercator S, Univerexport and DIS, might have coordinated prices to achieve high profit margins on essential goods.
Despite the robust profit margins, which grew significantly between 2016 and 2023, there is growing skepticism about the retail sector’s sustainability, especially given its reliance on price inflation. Consumer organizations have also raised concerns about the impact of these high margins on inflation and consumer purchasing power.
Meanwhile, the retail sector’s employees continue to struggle with wages far below the national average. While the retail industry remains one of the most profitable sectors, the average salary of retail workers last year was significantly lower compared to employees in wholesale trade. In 2023, retail employees earned an average net salary of 60,220 dinars, which increased slightly in the first eight months of 2024 to 67,836 dinars. Despite the sector’s success, there are few signs that employees are benefiting from these profits.
Additionally, market dynamics are shifting, with a slight reduction in the number of retail and wholesale companies, signaling a possible consolidation. However, trade remains a key sector, with a significant portion of Serbia’s workforce employed in wholesale and retail businesses, making up 18.3% of the total workforce. The top twenty retail chains continue to dominate the market, but with growing concerns over price manipulation and wage stagnation, the future of the sector appears uncertain.
