BGN 311 million have been invested by modern trade companies in Blagoevgrad and the region

Over BGN 311 million have been invested so far in Blagoevgrad and the region by the members of the Association for Modern Trade (SMT). The organization unites some of the largest retail chains with over 750 sites and nearly 24,000 employees across the country. The members of the association are leading companies in the sphere of trade in fast-moving goods, white and black appliances, health care products, drugstore products and construction materials and equipment. According to CMT data, the contribution of the companies to the budget of the municipality and the region exceeded BGN 1.5 million. In the South-West region, excluding Sofia (the capital), the number of people employed in the sites of SMT members is over 1,600 people, incl. nearly 600 people in Blagoevgrad district. This is 0.7% of all employed in the district.

A total of 70 stores of SMT members are located on the territory of the Southwest region, 24 of them are in the Blagoevgrad district, including 7 in the Blagoevgrad municipality. In the region, the coverage of CMT members is 8 objects per 100 thousand people of the population, which is comparable to most settlements, excluding the capital and the regions along the Black Sea.

The companies in the association invest in various long-term projects to improve the infrastructure of popular tourist routes in the region, support vulnerable social groups, healthcare, education, culture and environmental protection.

The aggregate effect, measured through the direct and additional internal demand created in the Bulgarian economy by the activities of modern trade companies in 2022, exceeds BGN 11.8 billion and reports a growth of 21%, according to the data from a study by the Institute for Market Economy for the role and socio-economic contribution of the sector in the country. The direct effects of the activity of modern trade are estimated at BGN 7.1 billion, incl. over BGN 5.7 billion in costs for goods and services delivered by Bulgarian companies, BGN 490 million in realized investments in the Bulgarian economy and over BGN 870 million in net salaries paid to employees. Added to the direct effects are 4.2 billion BGN additional effects along the value chain, created thanks to the activities of the suppliers of goods and partners of the chains, as well as over 500 million BGN induced effects from the consumption of household income of those employed in modern commerce in industries supplying consumer goods and services.

Persons employed in modern trade companies increased from 47.7 thousand people in 2020 to 51.4 thousand people in 2021 and 53.3 thousand people in 2022. The share of people employed in modern trade compared to all employed in retail trade increases from 24.3% in 2020 to 26.3% in 2022, which is tied to investments and the expansion of chain coverage in the country.

Remuneration in large enterprises in the retail trade is growing by nearly 13% and will reach BGN 1,822 in 2022, which is 56% above the average wage in the sector and higher than the average wage for all enterprises in the country.

Since its founding in 2010, the Association of Modern Trade (SMT) unites some of the largest retail chains with over 750 locations and nearly 24,000 employees across the country. Its members are leading companies in the FMCG, appliances, health care, drugstore, and building materials and equipment industries. Since its establishment, the association has protected their interests in strict compliance with established good practices, competition law and the principle of pluralism when setting priorities for the activity and when making decisions.

According to IPI data, the aggregate effect, measured through the direct and additional internal demand created by the activities of modern trade companies in 2022, exceeds BGN 11,840 million:

• Nearly BGN 6.2 billion spent on goods delivered by Bulgarian companies, services performed and investments made, and over BGN 870 million in net salaries paid to employees;
• About BGN 4.2 billion additional (secondary) effects along the value chain, created thanks to the activity of the suppliers of goods and the partners of the chains;
• Over BGN 500 million induced (tertiary) effects of the consumption of income of the households of those employed in modern trade in the industries supplying consumer goods and services.