Serbian Minister of Internal and Foreign Trade Jagoda Lazarević stated that suppliers have been operating under pressure for some time, but the existing regulation limiting retail margins has had a positive effect, reducing these pressures. She announced that the regulation will be amended this week, requiring retailers to formalize agreements with suppliers in line with the rules.
Addressing media reports of mass store closures, Lazarević emphasized that such claims are highly politicized and inaccurate. She noted that retailers routinely close unprofitable locations and open new ones, as part of standard business operations, and that there is no evidence of mass shutdowns.
The Minister highlighted a recent meeting organized by the Serbian Chamber of Commerce with suppliers, where officials received firsthand feedback about margin pressures. She confirmed that while some pressure on suppliers persists, the regulation has mitigated its impact.
“Retailers remain creatively bold—they know the limits but continue to exert pressure,” Lazarević said. She also noted that excessive “off-rabates” (rebates and additional charges) are a major burden on suppliers, and the government is taking steps to address this issue.
Lazarević explained that reforming long-standing systemic issues must be done gradually to avoid disrupting the functioning of the free market. The goal is to create a healthier balance where retailers remain profitable, prices for consumers stay reasonable, and suppliers are relieved of unsustainable obligations.
The upcoming amendment will formally require retailers to conclude annex agreements with suppliers, aligning their business practices with the regulation. This step is intended to prevent future abuses, such as retroactive billing for off-rabates once the regulation expires, ensuring greater legal certainty and fairer treatment for suppliers.
