Treade margin in the Republic of Serbia Cover Image

Трговинска мрежа у Републици Србији
Treade margin in the Republic of Serbia

Author(s): Milica Stojković, Violeta JEREMIJEV
Subject(s): Economy
Published by: Институт за међународну политику и привреду
Keywords: trade margin;trade;prices;consumer rights;regulations

Summary/Abstract: A trade margin or a price difference is a very important indicator of overall performance of business entities. Its size directly or indirectly distorts the effects of all critical success factors in trading companies, or overall trade and its individual sectors. The average retailer in Serbia is forced to put between 45 and 55 different levies into the trade margin, unlike his counterparts in Slovakia, Poland, the Czech Republic and Hungary, which have between 12 and 22 levies. Are prices higher in Serbia compared to countries in the region? The authors have tried finding the answer to this question by analyzing and comparing prices in retail facilities in Nis, a city in Serbia and Sofia, a city in Bulgaria. The rise in prices in Serbia is influenced, among other things, by the underdeveloped structure of our trade and the insufficient level of competition between trade entities in the wholesale and retail market. In order to protect consumers, economic policy makers take certain measures to prevent uncontrolled price growth through the creation of legal regulations of different intensities of legal force. The Law on Consumer Protection, as well as certain Regulations from different fields, have the tendency to harmonize with adequate legal norms the disagreement between the factual and legal situation in the field of the trade when the producers engage in market competition but also when they interact with the consumers. At present, the primary task is to systematise the necessary guidelines for future operations in order to complete and further strengthen consumer protection in Serbia. The main directions of the future strategy should be the consolidation of the legal framework. It is necessary, first of all, to analyze, supplement and correct all existing regulations in Serbia which directly or indirectly affect the level of consumer protection and ensure the regulations that regulate this area are closely aligned with the European legislation.

  • Issue Year: 2018
  • Issue No: 66
  • Page Range: 211-233
  • Page Count: 23
  • Language: Serbian