Change is coming across the European Union in three main areas - digitalisation, sustainable development and skills
BGN 1.3 billion needs to be invested in the transformation of the modern trade sector in Bulgaria by 2030 to adapt the industry to the challenges of the future. This forecast was made by the Executive Director of the Modern Trade Association Nikolay Valkanov at the first edition of the MORE THAN TRADE Modern Trade Forum in Bulgaria. The event aims to present the existing challenges facing the industry in the European Union and possible solutions to them with a focus on the role of modern trade as an investor, employer and driver of sustainable development. Among the attendees at the forum were the Minister of Economy and Industry Bogdan Bogdanov, representatives of the largest retail chains in Bulgaria, institutions, media and NGOs.
"Thank you all for choosing to create value in Bulgaria by developing businesses and teams in the country," Minister Bogdanov said, adding that only together business and the state, hand in hand, can create truly effective initiatives for the benefit of citizens.
The EU Industrial Strategy identifies retail as one of 14 industrial ecosystems that are key to the EU's economic recovery. A study by McKinsey and EuroCommerce shows that in order to make this shift, Europe's retailers will need to invest €600 billion over the next 7 years in three key areas - digitalisation, sustainability and skills. The investment required represents between 0.8 and 1.6% of companies' revenues and needs to happen urgently and in the context of the imminent introduction of the euro in our country, high inflation and the energy crisis.
According to the Institute for Market Economics (IME), nearly 95 thousand companies operate in the retail sector in Bulgaria, which is 23% of all non-financial enterprises in Bulgaria. The added value of companies in the retail trade reaches nearly BGN 5.4 billion, which is 4.4% of the gross value added in the Bulgarian economy and 7.1% of the added value of non-financial enterprises in the country. In recent years, there has been an increase in retail investment, with cumulative foreign direct investment reaching 1.7 billion euro, or 5.9% of all foreign capital in the country, by the end of 2021.
"The total revenue from sales of modern trade exceeds BGN 13 billion in 2021, but we generate an additional contribution of nearly BGN 10 billion to the country's economy, which is measured as orders to suppliers, thousands of jobs supported in our accompanying services and generated consumption through the income of employees," said at the forum Nikolay Valkanov.
