Clear, unambiguous and sustainable consumer behavior is what can correct the practices and policies of free market traders and lead to lasting changes in price levels. One-day protests such as a „supermarket boycott“ and state intervention in market relations and supply chains by imposing price caps or markup limits have no economic or market logic to achieve price reductions and long-term changes in favor of end consumers, according to the online platform „We, the Consumers“.
„Initiatives that call for a sharp change in the usual behavior of society or groups within it for a short period of time could draw the attention of government authorities, representatives of various sectors, and communities to a given issue when it seems that all other options have been exhausted. The goal in such cases is for those responsible for the emergence and resolution of the problem to look at the heightened public discontent and take relevant actions. In the case of the „Supermarket Boycott“ event, circles within society expect to ‘punish’ grocery chains with losses from unrealized sales, which would lead to a calming of prices, and the legislative and executive powers would be provoked to introduce and enforce certain measures. However, an essential rule is that in a market economy, demand determines supply, including the price levels of goods and services,“, Gabriela Rumenova told Economic.bg.
According to her, there is a real danger that such interventions could even harm consumers, if they lead to product shortages, withdrawal of investors, reduced competition, and speculation, which, in turn, drives prices up. If items from the list of price mark-up caps disappear from store shelves, what will be the effect of such a measure? It will be like with fake promotions – the red tags are there, but the discounted items are missing from the racks.
„Another real threat to damaging the economic interests of consumers from external intervention in price formation is the deterioration of quality or a reduction in the quantity of goods in packaging. In order to achieve a price that does not exceed certain threshold levels, some producers may resort to changing recipes to save on ingredients or use lower-quality ingredients, which affects the final product offered to consumers,“, Rumenova warned.
According to „We, the Consumers“, a one-day protest is not the right way to address the problem. Customers of large chains typically shop there once or twice a week over a longer period of time. If they do not purchase the necessary products on the day of the protest, they will do so before or after it, meaning they will make almost all their purchases from the same place on a different date. If they do make some purchases from another store and the chain suffers losses from this, the retailer will most likely compensate for these losses by charging its customers in subsequent periods to achieve the planned profits.
A working approach with a broad horizon is a lasting change in consumer behavior – customers should plan their consumption and purchases, avoid being influenced by promotions for impulsive deals, shop directly from producers, and stay informed. The participation of the state would be beneficial in terms of stimulating producers, controlling for potential cartel agreements, and encouraging fair competition.
