site.btaLarge Supermarkets Contribute 29.7% of Total Retail Revenue in Bulgaria, Employ 20.9% of All Workers in Sector - IME

The large supermarket chains in Bulgaria contributed 29.7% of total retail revenues in the country in 2021 and employed 20.9% of the total number of employees in the sector, according to a report by the Institute for Market Economics (IME). The conclusions in the report were made public by the Modern Trade Association, which unites 12 retail chains in Bulgaria and which has commissioned the analysis.

The report uses data publicly announced by the companies in the sector in the past calendar year. It is based on IME's own methodology and measures the value added by the activities of modern trade companies in the country, as well as additional effects along the supply chain and related industries.

According to the data, the overall impact of "modern trade" on the Bulgarian economy for 2021 amounts to over BGN 9.8 billion.

The data show that the total payments by food chains to Bulgarian suppliers during this period is over BGN 2.85 billion. The most significant amount of spending to suppliers went to producers of meat and meat products (over BGN 710 million), milk, dairy products and eggs (over BGN 460 million), alcoholic beverages (over BGN 390 million), various processed foods (over BGN 370 million). Payments were in the range of BGN 200-250 million to suppliers in each of the categories of fruit and vegetables; bread and bakery products; soft drinks; sugar and confectionery.

According to the report, the activity of Bulgarian food and non-food producers, which supply goods to the modern trade chains, generates an additional effect in the country's economy of nearly BGN 2.6 billion from increased revenues of related enterprises and industries.

The average income of employees in modern trade was 63% higher than the average for retail trade as a whole. In 2021, the average gross monthly salary of employees across the retail sector is BGN 1,036. 

Labour productivity in the large supermarket chains is around 4-5 times higher than in the micro businesses in the sector.

The data shows that the number of employees in modern retail companies increased from 41,800 in 2018 to 43,300 in 2021, their share rising to 20.9% of all retail employees, and the net remuneration received by them reached BGN 707 million.

The direct contribution to the national economy of companies in modern trade reached nearly BGN 5.9 billion. This is the result of nearly BGN 4.8 billion paid for supply of goods and services by Bulgarian enterprises, investments of nearly BGN 400 million and over BGN 700 million in net wages of employees.