At the Parliament’s Pricing Commission session, Temur Aleksandria, Executive Director of Nikora Trade, said that socially important products are frequently sold with minimal margins and sometimes even at a loss. According to him, retailers deliberately keep prices low on essential goods to ensure maximum affordability for the population.
Aleksandria noted that discount rates vary significantly by product category. While some items, such as cooking oil, are often sold below cost, other categories show little responsiveness to promotions. He stressed that the sector’s pricing structure is highly dependent on the nature and purpose of each product.
Discussing how promotional campaigns are planned, Aleksandria explained that discounts are not solely linked to expiration dates. Retail chains also use them to support consumers and ensure that a month’s worth of basic food items remains accessible. Products are grouped by types - proteins, fats, and more - so that each category regularly features some discounted items.
The Pricing Commission continues to explore market structure, pricing mechanisms, and operational processes within Georgia’s retail sector. After meeting with producers of essential goods over the past six weeks, lawmakers are now hearing from major retail chains. The Commission is expected to present its final conclusions by the end of April, while an international firm will be hired to conduct an independent assessment of the country’s price formation system.
