Bulgaria’s government creates ‘Shop for People’ state-owned joint-stock company

Bulgaria’s Cabinet approved on August 6 the establishment of a state-owned joint stock company Shop for People, headquartered in capital city Sofia, the government information service said.

A decree was also approved to approve changes to the budget of the Ministry of Agriculture and Food for 2025 in connection with the establishment of the company, the statement said.

The company will carry out trade in food and industrial goods admitted to the Bulgarian market, with priority being given to products from Bulgarian producers, it said.

The statement said that the company will also carry out ancillary activities related to its main commercial function, as well as other activities not prohibited by law.

“The company’s goal is to provide priority access to Bulgarian goods at affordable prices for consumers and for socially oriented trade, especially in smaller settlements. It is expected to reduce the dependence on imported goods on the Bulgarian market,” the statement said.

In March, Bulgaria’s Parliament approved the second reading of the Budget 2025, including a provision tabled by Magnitsky Act-sanctioned Delyan Peevski’s Movement for Rights and Freedoms-New Beginning group to set up a state-owned commercial company to operate a chain of shops selling goods only from Bulgarian producers, which was allocated 10 million leva as starting capital.

The decision by the government to set up the joint-stock company had been on the coalition government’s July 23 agenda, but was removed from the list for that day’s meeting without explanation, before reappearing as an agenda item on August 6.

The first “Shop for People” is expected to open in the autumn. The step of the state giving itself a role in the retail market has been roundly criticised by leading economists and criticised as a populist move for individual political gain.

(Photo: Frances Magee)