Lidl Bulgaria CEO Pushes Back Against 135% Food Markup Claims as Butter and Cheese Prices Face Scrutiny

Lidl Bulgaria chief executive Milena Dragijska has challenged claims that retailers are applying excessive markups to essential food products, including butter and cheese, after reports highlighted price increases of between 85% and 135% above supplier costs.

Speaking on NOVA television’s Zdravey, Bulgaria programme, Dragijska said Lidl operated on a low-margin business model, earning between €2 and €5 in profit for every €100 in turnover.

She also highlighted the retailer’s partnerships with more than 300 Bulgarian producers and said Lidl expected exports of their products to reach €100 million this year, compared with €60 million previously.

CEO Points to Weak Domestic Production

Dragijska attributed high food prices in Bulgaria to structural problems in the economy and limited competitiveness among domestic producers.

She cited pork production as an example, saying Bulgarian producers supplied no more than 40% of the country’s requirements. The shortfall means imports are needed to meet domestic demand.

According to Dragijska, increasing the capacity and competitiveness of local producers would help address some of the pressures affecting food prices.

VAT and Wage Increases Affect Price Differences

Addressing differences between food prices in Bulgaria and other European Union countries, Dragijska pointed to variations in taxation and labour costs.

She said Bulgaria’s value-added tax rate stood at 20%, while some Western European countries applied rates of between 6% and 7%.

The Lidl Bulgaria chief executive also noted that wages in Bulgaria had increased by more than 45% over the past five years. In comparison, she said wages in Western Europe had risen by between 2% and 4% over the past three years.

Lidl Expands Discounts to Ease Pressure on Shoppers

Dragijska said Lidl had increased its promotional activity to help customers manage household spending.

The supermarket chain raised its weekly fruit and vegetable promotions from eight to 13 and increased its investment in discounts from 5% to 10%.

Lidl also offers a consumer basket containing 30 products, each carrying a minimum discount of 15%. More than half of the items in the basket are Bulgarian products, according to Dragijska.

Retailer Says Producers Face No Additional Charges

Dragijska said Lidl followed a “net-net” pricing principle and did not charge suppliers for logistics, joining its retail network or securing shelf space.

The company is also introducing self-checkout kiosks and improving internal business processes as part of efforts to limit additional costs that could eventually be passed on to consumers.

Call for Government and Businesses to Address Food Costs

Dragijska called for coordinated action between the government and the business sector to improve the competitiveness of Bulgarian products.

She urged authorities and businesses to examine unregulated imports and review agricultural subsidy policies, arguing that changes in these areas could help strengthen domestic production and support local goods in the market.