Giorgi Khabashvili, General Director of the hypermarket chain "Goodwill", says that rising food prices in Georgia are not caused by supermarket markups. In a competitive market, chains cannot impose high margins without losing customers.
Khabashvili explained that the majority of the final price goes to suppliers. “For example, if a product costs 10 GEL, 8 GEL goes directly to the supplier. The remaining 2 GEL covers salaries, rent, and other operating expenses. Supermarkets make only about 3 GEL profit per 100 GEL of sales,” he said. Markups on most products range 5–12%, and on essentials like eggs, bread, milk, and oil, they average 15%, meaning that price hikes largely do not pass through supermarkets.
He attributes the increase in food prices primarily to import dependence, noting that importing a container from the EU costs €5,000–7,000, plus domestic logistics, raising the final cost. High rental fees and higher production costs abroad also contribute.
Khabashvili added that EU subsidies for certain food products help keep prices low. “In many European countries, dairy and other primary products are subsidized, and some are even exempt from VAT. As a result, retail prices there are often lower than in Georgia,” he said.
