Modern Trade Alliance: Consumption of Slovak Products May Decline in 2026

Bratislava, 13 March (TASR) - Consumption of Slovak products could decline in 2026, with the reasons primarily being rising production costs and increased consumer pressure on prices, the Slovak Alliance of Modern Trade (SAMO) told a press conference on Friday. According to the alliance, consumer demand may also weaken as a result of the government's austerity measures, which are estimated to reduce household disposable income by approximately €800 million. Retailers therefore expect an even stronger shift among customers toward cheaper alternatives and promotional offers. Sales of premium and higher-priced products are expected to continue declining, and consumers will focus more on basic and affordable products. This trend could negatively impact Slovak manufacturers in particular, as domestic production faces higher costs than foreign competitors, according to the alliance. SAMO also drew attention to the deteriorating economic situation of households. According to them, consumers' efforts to save money were already evident last year, even at the expense of their own health. Meanwhile, the alliance noted that 2025 brought relative price stability. Despite higher overall inflation, food inflation stood only at 1.8 percent, the lowest since 2017. However, according to SAMO, retailers' purchase prices rose by nearly 5 percent, with retailers absorbing part of the increase through their own margins. am