The organization Alternativa Crna Gora (ACG) published the results of a survey on its Facebook page, revealing that, based on 6,743 votes from their followers, they decided to call for a long-term boycott of the Voli supermarket due to high prices. The ACG Facebook page states that 63.8% of the survey participants voted in favor of this decision. They have given Voli until Friday, February 14, to announce significant price reductions, especially for essential groceries and to freeze them for an extended period. Otherwise, they will call for a general boycott.
This move comes in response to public dissatisfaction with the high prices of basic products and the inadequate response of retail chains to the economic situation in the country. The survey results clearly showed that a significant number of citizens believe that the prices at Voli supermarkets are unjustifiably high compared to average salaries and the cost of living. Despite public appeals and expectations for retail chains to act responsibly toward consumers, the lack of concrete measures has led to the decision for a long-term boycott, according to ACG.
They state that the boycott is part of a broader public pressure on retail chains to adjust their business policies to economic realities and offer more affordable prices.
Voli, two days ago, questioned whether the call for a boycott genuinely represents consumer interests or if there are other motives unrelated to trade and economics. They urged the government to reduce taxes to EU levels, stating that, as always, they are ready to be the government’s partner. They also argued that creating an atmosphere where retail chains are blamed for inflation diverts attention from other issues.
“Citizens of Montenegro are sending a clear message that they will not tolerate unfair business practices that further burden their budgets. We call on all citizens to join the boycott and support those traders who respect consumers and their economic capabilities,” concluded ACG.
Two days ago, Voli questioned whether the call for a boycott truly represents consumer interests or if other motives unrelated to trade and economics are at play. They urged the government to lower taxes to EU levels, emphasizing that they are, as always, ready to partner with the government. They argued that blaming retail chains for inflation diverts attention from other problems. They agree that prices are too high but claim they are a consequence of inflation, not the cause. They provided data comparing the tax burden in Montenegro and Croatia, where VAT on fish, fruits, and vegetables is 5%, compared to 21% in Montenegro, while basic groceries in Montenegro are taxed at 7%, compared to 5% in Croatia.
When asked to comment on the call for a Voli boycott, the Chamber of Commerce of Montenegro (PKCG) stated that they have clearly taken a stance against such initiatives and provided compelling reasons against boycotting retail chains.
“We particularly emphasize the need for non-discrimination in every economic field and towards every company, highlighting to the interested professional public that a boycott, as a means of influencing economic policies, is neither reasonable nor justified,” said PKCG.
Economic analyst Mirza Mulešković told Pobjeda that he always supports civil initiatives but believes that a boycott will not yield the expected results, as prices have risen due to increased costs, not margins.
“If we are going for a boycott, then all chains should be boycotted. Singling out any particular one, especially through online voting, is not right, as all chains are equal participants in the market, and no distinction should be made between them,” said Mulešković.
He points out that the entire region is facing the same issue and adds that, over the past three years, all costs have risen.
“Only the minimum wage has been increased twice, and we all know that retail employees predominantly earn the minimum wage, which has certainly burdened retail chains. Additionally, VAT rates, along with higher customs duties and excise taxes, have also contributed to the rise in prices,” said Mulešković.
When there is uncertainty in the market, Mulešković explains, prices rise.
“We had to expect this after administrative wage increases and an influx of over 100,000 foreigners, which led to increased money supply in the market, and consequently to rising prices. This is basic economic logic,” he states.
He sees the only way to lower prices as reducing costs, adding that a dialogue between the economy and decision-makers is essential.
“It is clear that all the measures we’ve had in recent years have not yielded results, but they have shown that margins on these products weren’t high, as there were no significant price differences,” says Mulešković.
Given how much retail chains influence public finances and GDP, Mulešković warns that any decline in consumption could lead to problems for public finances, which are predominantly funded by VAT. He also criticizes the fact that all measures the state has introduced have been consumer-oriented, noting that the state has profited the most from inflation. According to Mulešković, the Fiscal Strategy forecasted inflation for this year, knowing that introducing additional costs to the economy would result in higher prices.
“Due to the rising prices, not only in retail but generally, we have these record revenues that decision-makers are boasting about. The consumption and these prices are key to filling our budget,” says Mulešković, questioning whether Montenegro’s production sector has been stimulated during this time.
He adds that for the past three years, there has been talk about strategic reserves, and in those three years, “we’ve managed to implement a few catalog-based actions” aimed at price restrictions.
“I see an opportunity here for a public-private partnership because I believe the cheapest way to create strategic reserves would be to entrust businesses with storing a certain amount of goods for the state,” says Mulešković, adding that there must also be a reduction in costs and subsidies for Montenegrin production.
