Prime Minister of Georgia said in today’s video address that his Government would work actively with distribution companies and retail chains to achieve price reductions for citizens.

“I urge law enforcement bodies to study the matter in depth and determine whether there are signs of criminal offenses in the activities of specific entities. I also ask the Parliament to establish a parliamentary commission that will use appropriate parliamentary mechanisms to assess the situation.

The financial profits of retail chains in Georgia are significantly higher than those in Europe, specifically, the net profit margins of certain retail chains in the country were reaching as high as 7%, 8%, and even 14%, whereas in Europe, their average net profit margin was around 2%.

It is also important to consider that operating costs for markets in Europe - such as rent, labor wages, utilities, and other expenses - are much higher. Furthermore, the net profit margins of distributor companies are also very high, typically ranging from 6% to 13.5% in Georgia.

The price markup on products and the financial burden placed on suppliers are so high that it is often more profitable for Georgian producers to export their products abroad rather than sell them in Georgian markets”, - said Irakli Kobakhidze.