I do not believe this, because a few steps between the reseller, etc. and the final markup will be as the regulation says. It is very easy to overcome such a barrier, in general, attempts at central administration, especially by administrations that are not famous for very good information and capacities, are pointless. This was commented on the program "120 Minutes" on BTV by the banker and former Deputy Minister of Economy Levon Hampartzumyan regarding the proposal for a ceiling on markups.
Demonizing large chains is a local game here, because in principle, small stores offer convenience in exchange for slightly higher prices everywhere. There, a higher price is expected, but it is simply around the corner. The shortest supply chains are with the large chains, he added.
According to him, the problems with the large chains are structural.
If producers unite in cooperatives that are large and powerful, they will be able to hire the appropriate brute force to counterbalance if someone wants to blackmail them on the exchanges. If we have a powerful cooperative that has both the means of production and many people and holds a significant part such as a large market share, very few people will be able to resist, the banker commented.
According to Levon Hampartzumyan, economic measures, incentives and penalties are needed.
If we have a sufficiently large production or relatively easy import, there should be no cartels, because the best fight against cartels is larger production and the opportunity for competition and quality control. If the process is designed so that there is no need to go from store to store and control what they want, but simply to have enough goods at a low price from enough sources, things will be resolved, he pointed out.
According to Hampartzumyan, when the euro is introduced in Bulgaria, inflation will not rise. There will also be no speculation if the state creates conditions for competition, sufficient production and supply of goods.
Prices in most cases go up, but incomes catch up with them. That is what is important. It is not that something seems expensive to us, but whether it is accessible or inaccessible, that is much more important. There are temporary and seasonal fluctuations in the market, but in general we should expect prices to increase and incomes to catch up with them. That is why we must have a well-functioning economy, Levon Hampartzumyan noted.