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Boycott of Large Supermarket Chains in the Balkans

A snowball effect began in the Balkans on Friday, January 24, when Croatia initiated a mass boycott of large supermarket chains. Citizens of Montenegro, Bosnia and Herzegovina, North Macedonia, and Serbia quickly followed suit, staging a coordinated protest on January 31. The movement is a response to soaring prices and declining living standards.

On January 31, 2025, nationwide boycotts of major supermarket chains took place across Croatia, Bosnia and Herzegovina, Montenegro, North Macedonia, and Serbia. These protests were a direct reaction to the steep rise in the prices of essential goods. The phenomenon can be analyzed from several perspectives:

  1. Economic Context

Inflation and Price Increases: The region is experiencing high inflation, exacerbated by global economic crises, including rising energy costs, supply chain disruptions, and geopolitical instability. This has led to sharp increases in food prices, household essentials, and other basic goods.

Declining Purchasing Power: Incomes have not kept pace with inflation, significantly reducing purchasing power. This financial strain is a key factor behind the widespread participation in the boycotts.

  1. Social and Political Aspects

Public Discontent: The boycotts reflect widespread frustration over the perceived lack of effective government action to combat inflation and protect consumers.

Organization and Mobilization: Social media and civil society initiatives played a crucial role in mobilizing citizens, demonstrating the growing influence of digital platforms in political and social movements.

  1. Impact on Retail Chains

Economic Losses: Large supermarket chains faced significant financial losses due to the drop in sales. This may prompt them to introduce temporary discounts or price reductions to regain customer trust.

Reputational Risks: If supermarket chains fail to address consumer concerns, their public image may suffer long-term damage.

  1. Regional Features

Croatia

As an EU member, Croatia is more exposed to global economic trends but also benefits from European support mechanisms.

The boycott movement in Croatia was initiated by the Facebook group “Hello, Inspector”, following a call from a consumer association. The protest targeted three international retail chains and three specific products—carbonated drinks, bottled water, and detergents—alongside a broader rejection of various services. In response, the Croatian government introduced a new list of 70 products with capped prices, expanding on the 30-item limit set in September 2023.

Prime Minister Andrej Plenković stated:

“We are capping prices to support the most vulnerable members of our society, whose financial situation compels us to continue this policy.”

Bosnia and Herzegovina

Political and economic instability in the country has made its citizens particularly vulnerable to inflation.

Online forums in Bosnia and Herzegovina claim that prices there are higher than in some developed countries, such as Germany, while household expenses remain unaffordable. Boycott organizers are urging the government to take immediate action, including measures to curb inflation, increase the minimum wage, and improve overall living standards.

Montenegro

Still transitioning to a fully developed market economy, Montenegro is highly susceptible to economic shocks.

The boycott in Montenegro was spearheaded by the NGO “Alternative Montenegro”, which has accused major retail chains of price-fixing. Further protests are planned in the coming weeks.

North Macedonia

With a heavily import-dependent economy, North Macedonia is particularly vulnerable to global economic fluctuations.

On January 31, a nationwide boycott targeted not just large supermarket chains but also gas stations, cafes, and restaurants. Citizens were encouraged to shop exclusively at small local stores for the day.

Last year, large retailers in North Macedonia generated nearly €930 million in revenue, with some reporting double-digit profit growth. Meanwhile, the cost of food and beverages increased by 10% over the past year. The Skopje government supported the boycott and promised inspections, while the opposition blamed the ruling party for the crisis.

In response, Prime Minister Hristijan Mickoski announced plans to reduce taxes, which he claims will help lower prices. Economy and Labor Minister B. Durmisi also voiced support for the citizens’ initiative. Many Macedonians insist they will no longer tolerate unrealistic price hikes, especially given the sluggish growth of wages.

Serbia

As the largest economy in the region, Serbia has greater capacity to manage economic challenges, but public discontent remains high.

  1. Future Prospects

Government Interventions: Authorities in the region are expected to introduce anti-inflationary measures such as subsidies, price controls, or tax cuts.

Sustained Public Pressure: If government action is deemed insufficient, further protests and boycotts are likely.

Shifts in Consumer Behavior: These events may lead to a long-term preference for local producers and smaller retailers.

Conclusion

The coordinated boycotts on January 31, 2025, serve as a powerful indicator of the economic and social challenges facing the Western Balkans. They highlight the urgent need for effective government policies and corporate responsibility in addressing inflation and improving living standards.

This rare display of unity across the Balkans suggests that when faced with shared economic hardship, people in the region can act collectively—despite historical divisions. However, not all citizens supported the boycott. Many argue that such actions will not solve inflation and that governments and regulatory bodies, rather than shop employees, should be held accountable.

In market-oriented economies, consumer boycotts have limited influence on inflation. The ultimate responsibility lies with governments, which should avoid scapegoating retailers and instead implement sustainable solutions to ease the financial burden on citizens.

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