CZK 64.90. “Penny Market, Globus, and Billa Captured.” Flyers, discounts, pricing

09.09.2023 19:31 | monitoring

The Chamber of Agriculture hit Tomáš Prouza, head of the Trade and Tourism Association of the Czech Republic, for not being able to explain in questions from Václav Moravec last Sunday how it is possible for different supermarkets to have the same price for chicken during the summer. According to Chambers, it turns out that competition doesn’t work here when supermarkets don’t behave in a market-like manner, and they see a clear objective in this. In the debates, people referred to Bruce as a “collaborator of the criminal cartel”, which follows the motto “whose bread you eat, whose song you sing”.

CZK 64.90.

Broadcasting questions from Václav Moravec

Description: Minister Marek Wiborn and Tomas Bruza with Vaclav Moravec

During the discussion, the host of the show, Václav Moravec, pulled several advertising flyers from several large retail chains, such as Benny, Lidl, Albert, Phila, Globus, etc., on the table in front of Bruce. In each of them, a few weeks later, a discount chicken appeared for the same price of 64.90 crowns. “How is that possible, the chicken suppliers only give it for 64.90, – in all the chains across the country?” He turned to Brusa with the question.

Brusa laughed at first, then explained to the assessor that it was the competition he was working on. “Price following is a standard tool in an active competitive market. That’s what’s happening here,” he explained, adding that it was no longer clear who was following whom in this case.

According to Minister Výborny (KDU-ČSL), the situation on the market is not normal. Bicha, head of the agricultural association, pointed out that producers are offering chicken meat at 30 kroner per kilo. “It’s hard to argue with economic illiterates,” sighs Brusa.

Prouz’s performance attracted considerable attention, with the Chamber of Agriculture later drawing attention to strange behavior in the Czech market: “As the TV debate confirmed, strange things are happening in the Czech food market. A supermarket lobbyist asked an evaluator why all retail chains in the country were selling chicken at the same price of CZK 64.90 during the summer. Tomáš Prouza could not give a very definitive answer.For a penny like another! According to Mr. Prouza, others only copy the lower prices of others.

If supermarkets behaved in a truly market-like manner, each of them would have different prices, or one of them should be cheaper. After all, they cannot know in advance how much the competition wants to sell. They can only guess. In addition, supermarkets prepare leaflets with promotional prices several weeks in advance. In this we see a clear purpose. But today, Mr. In Brusa’s words, this is called ‘price tracking,'” the agricultural association wrote on its Facebook profile.

In no time, a discussion erupted under his post, in which Bruce was heavily criticized.

Some then called for Tomáš Prouza, the vice-president of the Chamber of Commerce and adviser to the Minister of Industry and Trade, to step down from his top post. “Brusa is an accomplice of a criminal cartel. Such people should be removed from these positions!” said one panelist in his reaction.

“I watched the whole debate and I laughed so hard. Total valley of tears, one blaming the other, but after last year full of lamentations, everyone is posting record profits – both retail chains and farmers. Perhaps a miracle…,” another commenter wrote in his Added a comment.

It was often said that this was a clear cartel agreement. “It’s no coincidence that the cartel agreement is criminal and the fine is high in millions, I see how it applies to one, it’s income to the state fund, isn’t it?” Joseph Stepanovitch paused. “Clearly a cartel deal,” echoed other users. “Mr. Tomasz ‘hypermarket’ Brusa calls it price following. I call it a cartel like a pig,” Petr Režný is more clear.

“Well, Mr. Brusa lives up to the adage: ‘Whose bread ye eat, sing his song,'” people assessed in the reaction. According to them, it would be naïve to think that there has been no market sale for the past thirty years, and that there is some sort of agreement that is robbing consumers everywhere.


Author: Natalya Prozowska

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