Three Retailers in Croatia Team up To Keep Market Share

"The domestic market is getting more and more competitive. We do not see further room for organic growth on the Croatian market, (...), and that partnership was a logical move to consolidate our position on the market and to try to retain it," Zvonimir Morovic, board member of Billa Hrvatska told a news conference. He is also board member of the new company, Mercator-Plodine-Billa d.o.o.

The joint approach will mean payment "on time" to suppliers as inflation has drained liquidity from the market, Alan Krickovic, head of Mercator Hrvatska and board member of the new company, told the news conference.

Croatia recorded in July its highest consumer price inflation in the last 14 years, 8.4% on the year, but it is widely expected to ease by the end of the year. The central bank expects that the average annual inflation this year will be some 6.5%, sharply up from 2.9% last year. 

This initiative should result in lower prices for consumers, the head of the joint venture, Djozi Heberling, added.

Croatian privately-owned retailer Konzum holds the biggest share on the country's retail market with some 30%, followed by Mercator with a seven percent market share.