Blocking of the Polish-Ukrainian border will lead to higher prices for a number of goods - Ukrainian Retailers Association

The blocking of the Polish-Ukrainian border will lead to a shortage and a significant increase in prices for a number of categories of goods on the Ukrainian market. This was stated by analysts of the Ukrainian Retailers Association in a commentary to UNN.

"The blocking of the Polish-Ukrainian border has caused significant challenges for retailers, limiting the import of goods and causing delays in deliveries. This forces operators to look for alternative routes, in particular through neighboring countries (Hungary or Romania), which leads to difficulties and prolongs the delivery time by 2-3 days. This increases the cost of each flight by 600-1000 euros. Inevitably, this will lead to an increase in prices for a number of goods for end consumers," the Association says.

According to analysts, the problem is becoming global, as domestic producers are also facing a lack of necessary components, equipment, or packaging coming from abroad. This may lead to a shortage of certain categories of goods on the Ukrainian market, given the importance of these imported elements for production processes.

"For the sake of understanding, for one large retail chain alone, the losses from the decline in trade can reach about UAH 100 million per week," says one of the analysts at the Retailers Association.

Experts also add that the situation is particularly critical for chains that import food, including vegetables, fruits, fish, cereals, and dairy products, as it is simply impossible to ensure proper temperature conditions.

"In general, the situation with the blocking of the Polish-Ukrainian border by Poland will cause irreversible processes in bilateral relations between the countries. The response to this has already been a growing wave of Ukrainians refusing to buy Polish goods, which is becoming a symbolic sign of protest against actions that are perceived as unfair. This emotional choice made by consumers reflects more than just an economic decision; it reveals deep frustration and a call for respect and understanding," the EBA said.

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Analysts of the Ukrainian Retailers Association told UNN about the situation in different segments:

The fashion retail sector is experiencing significant delays in the supply of goods, which leads to shortages in assortment and difficulties in procuring certain production materials, delaying the process for at least a month.

As for grocery retail, Ukrainian retailers note that due to the continued blockade of the border, there will probably be a rise in prices for the end consumer, but they are quick to assure that it will be minimal. In addition, some retailers will try to contain price increases despite all the difficulties.

Auchan Ukraine is facing a critical situation with fruit, namely bananas of the required maturity due to delays at the border. Prices for alcoholic beverages may also rise by up to 15%.

Novus says that it will try to restrain price increases for the time being, but with further increases in the cost of services, it will face both a rise in price and a shortage of goods. First of all, we are talking about vegetables, fruits and cheap socially important goods. The chain has already refused to import some goods.

Metro Ukraine has problems with the supply of absolutely all imported goods that transit through the EU.

The ECO Market notes that there are some problems with the blocking of the Ukrainian-Polish border, but they are mostly related to Polish-made products.

The Aurora chain has not yet felt a significant impact on inventory or sales, as they always allow for more logistics time when planning deliveries.

"This blockade affects not only Ukraine, but also Poland itself and its producers. After all, many Polish companies have been working, among other things, with a focus on our market," concluded one of the antitheticals.

Recall

As of this morning, 1150 trucks heading to Ukraine amid the blockade of Polish farmers are queuing up at five checkpoints in Poland, most of them opposite the Yagodyn checkpoint.