State Food Stores Tap Retail Giants for Management

Former Billa and Kaufland Leaders to Steer New National Grocery Chain

A new state-owned enterprise, “Shop for People” EAD, is set to launch, drawing seasoned retail executives to manage its operations. This initiative, championed by politician Delyan Peevski, aims to establish a chain of food stores with a cap on markups.

Key Leadership Appointments

The company’s board of directors includes Nikolay Petrov, who previously served as Operations Director for Billa Bulgaria, bringing over 25 years of retail leadership experience. His expertise spans crisis management and business transformation, having developed supermarket chains across Bulgaria and Uzbekistan.

Dimitar Spasov, a former general manager for both Billa Bulgaria and Kaufland Bulgaria, will act as an advisor to the Minister of Agriculture and Food, Georgi Tahov. Spasov, who currently manages Teddy Trade Discounter, is expected to lend his extensive knowledge of retail and logistics to the new venture.

The board also features Olga Stoyanova, who has nearly three decades of legal experience and has held various advisory roles within the Ministry of Agriculture and Food since 2014. Independent member Ivaylo Marinov, a lawyer specializing in corporate and commercial law, rounds out the initial board.

Behind the State-Owned Enterprise

The government’s decision to establish “Shop for People” EAD, capitalized at BGN 10 million, follows significant political maneuvering. The creation of the company, initially proposed in the 2025 budget, faced delays attributed to internal disagreements among coalition partners, with reports suggesting a trade-off involving the closure of a corruption commission.

The proposed model for these stores is to offer primarily Bulgarian products with a fixed markup of no more than 10%. This strategy aims to provide more affordable food options to consumers. For context, food inflation in Bulgaria has seen significant fluctuations, with prices rising by an average of 10.8% in the year leading up to April 2024 (National Statistical Institute, May 2024).

Political Ramifications and Delays

The formation of “Shop for People” EAD was reportedly a point of contention between the MRF (Movement for Rights and Freedoms) and GERB parties. Initial proposals for the management board, with perceived affiliations to Delyan Peevski, sparked resistance from GERB, which sought greater representation for its own experts. This political deadlock contributed to the project’s delay, exceeding initial timelines by several months.

The government’s commitment to establishing the company was stipulated in the State Budget Act, which mandated actions within one month of its promulgation on March 27. However, this deadline was significantly missed, highlighting the complexities of inter-party consensus on key governmental initiatives.