Georgia’s Distributors Business Association says major retail chains are increasing fees charged to suppliers during contract renewal negotiations, adding pressure to distributors and contributing to higher consumer prices.
Association head Lasha Rizhamadze told BM.GE that higher retail fees, combined with rising operating costs such as traffic fines, compliance-related investments, and electricity tariffs, are increasing the financial burden on distributors and local producers.
As of Rizhamadze, some retail chains have already requested higher payments from suppliers, which he argues will ultimately be reflected in product prices. He expressed hope that further fee increases will be avoided.
The Retail Association has rejected the claims, stating that retail networks have not increased fees or cashback margins. Executive Director Sopho Kashakashvili said the association is aware of requests from distributors to raise product prices, but those increases have not been implemented so far.
