Competition among retail chains in Georgia is intense, but monopolistic elements within the supply chain are artificially inflating prices, according to Archil Melikadze, CEO of retail chain “Ori Nabiji”. Speaking to BMG, he said that while retailers operate in a highly competitive environment, price pressures often originate earlier in the distribution process.
Melikadze noted that even the largest players hold relatively small market shares - "Ori Nabiji", for example, accounts for just 8%, highlighting the fragmented and competitive nature of the retail sector. He added that businesses are open to regulations that improve transparency, though details of the government’s planned measures are not yet clear.
According to him, the main issue lies with monopolistic actors in the supply chain, which drive up costs before products reach retailers. He stressed that proper regulation of such players could help reduce prices, but emphasized that the effectiveness of any policy will depend on its design.
The parliamentary commission on pricing has acknowledged imbalances in the market and is considering new standards to regulate relations between retailers and suppliers. The goal, officials say, is to improve transparency, ensure fair competition, and ultimately lower prices for consumers.
