Deputy Minister of Economy and Sustainable Development Vakhtang Tsintsadze stated that markups in Georgia’s trade supply chains are substantial, with the average markup from product cost to retail outlets around 90%, and in some cases doubling or more, excluding VAT.

Addressing the issue of high product markups and the financial burden on suppliers, Prime Minister Irakli Kobakhidze noted that profit margins of Georgian retail chains are significantly higher than those in Europe. Net profit margins for some local chains range from 7% to 14%, compared to an average of about 2% in Europe.

Deputy Minister Tsintsadze also pointed out a notable price gap between Georgian and European online markets, with comparable products in Georgia costing 20% to 180% more than in European e-commerce platforms.

He further highlighted the challenges local producers face in entering online markets, largely due to contractual conditions imposed by these platforms.

“This challenge is neither new nor unique to Georgia; similar issues exist in various European countries. Many have implemented appropriate mechanisms. Our goal is to carefully study the issue and develop effective solutions,” Tsintsadze emphasized.