Spar Deputy CEO Markus Kaser Expresses Satisfaction with Revenue and Market Share Growth—but Criticizes Hasty New Regulations
Spar CEO slams Austria's profit margin controls as economic threat
Markus Kaser, deputy CEO of Austrian supermarket chain Spar, has voiced strong approval of his company's sales and market share performance—but far less enthusiasm for a wave of new regulations affecting the retail sector.
While Kaser acknowledged that the federal government has acted as a "stabilizing force against political extremes," avoided constant infighting, and broken the wage-price spiral, he argued that many recent measures are being "rushed through without sufficient thought." He called for affected parties to be consulted earlier and more thoroughly in the process.
His remarks came at Spar's "Food Salon" event on Tuesday, which primarily showcased nutritional trends and new product lines. Yet the discussion frequently turned political.
Kaser singled out "excessive bureaucratization" as a major burden for Austria's leading supermarket chain. He cited the new Price Display Act and what he called the "poorly conceived" VAT reduction on staple foods—a change that cost Spar €2 million to implement. "The effort far outweighs the benefit," he said. "No one needs this."
He also took issue with the tendency to place responsibility on retailers, even though they occupy the final link in the value chain. As an example, he pointed to the Anti-Shrinkflation Law, designed to combat the practice of reducing product quantities while keeping prices the same—or even raising them. Kaser argued that manufacturers, not retailers, bear primary responsibility. Spar, he stressed, has already delisted any products that deceive customers. "We don't stock shrinkflated items, and we never will."
Cheaper Products Without Compromises
In contrast, Kaser highlighted two products—an organic yogurt and a chocolate mousse—where production changes have actually increased quantity while maintaining the same price.
He also pushed back sharply against claims that grocery retailers are the main drivers of inflation. "The debate is far too one-dimensional," he said. "The government should focus on lowering energy prices instead—that would benefit everyone: industry, retailers, and households alike."
While the Iran conflict could drive food prices higher if it drags on, Kaser noted countervailing factors, such as overproduction in the dairy sector. For now, he said, the situation requires careful monitoring.
Margins of Just One to Two Percent
Kaser categorically rejected the government's proposed margin controls—intended to curb alleged excess profits—pointing to Spar's slim profit margins of "one to two percent." Such intervention, he warned, would "undermine the market economy and harm the entire national economy."
Beyond the criticism, however, Spar's performance remains strong. In Austria, revenue grew by 4.5% to €10.82 billion, while market share climbed 0.4 percentage points to 36.2%. The chain now operates 1,514 stores.
Kaser on the Hipp Baby Food Extortion Case
Regarding the recent extortion scandal involving Hipp baby food—where products were found to be contaminated with rat poison—Kaser made clear that the responsibility now lies with police and investigators. Spar, he said, acted "swiftly, comprehensively, and preemptively" over the weekend, pulling all Hipp products from shelves before the full extent of the threat was even known.
Addressing journalists, he explained: "We took immediate action because safety and 100% reliability are our top priorities. From the very first moment, we made it clear: any customer who bought Hipp products—no matter where—could return them to us for a full refund, no receipt required, no bureaucracy."
Kaser emphasized that Hipp products will only be restocked once there is "absolute clarity" about what happened and full safety guarantees are in place. But he cautioned against spreading panic: "That helps no one."
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