Does retail include generator costs directly in the price: explanation from the association’s chairman
31 January 09:14
Despite the difficult situation in the energy system, chain stores are operating, ensuring uninterrupted service and access to essential goods, even despite rising costs. Retailers do not include the cost of generators directly in their prices. On the contrary, chains often hold back price increases.
This was reported to Delo.ua by Andriy Zhuk, head of the Ukrainian Retailers Association, according to "Komersant Ukrainian".
“As of today, the Ukrainian Retailers Association has over 100 member companies, a significant portion of which are food retailers. The key thing we see is that chain stores are operating. There are no mass closures. The only thing that may be adjusted in certain regions or locations is the work schedule, given the security situation,” Zhuk said.
The head of the association noted that during the full-scale war, some chains switched to a more flexible management model — conditional “decentralization.”
“In practice, this means that the local manager has the authority to make operational decisions: to close the store early or not to open it if the situation is dangerous or does not allow it to operate without risk to staff and visitors,” Zhuk added.
According to him, virtually all large and medium-sized chains have invested in autonomy: generators, inverters, battery and hybrid systems. This is especially true for local stores, which often use not only diesel generators but also inverter solutions, allowing them to operate more stably and economically.
“The shelling of energy infrastructure began in the fall of 2022, and businesses used this time to prepare. In retail, this was a systematic effort. Back in 2022, RAU conducted research that showed that a significant portion of stores were already at least partially autonomous. That is why today, despite the difficult circumstances, the situation is under control and the quality of service has been maintained,” Zhuk said.
The expert stressed that it is important to understand that running generators is significantly more expensive than using even imported electricity.
“Large generators can consume about 150 liters of fuel per hour, small ones — about 10 liters. These are significant costs. And despite this, in crisis conditions, retail is guided not by financial logic, but by a social mission — to provide people with essential goods,” Zhuk noted.
What is the situation with food prices in stores?
“Yes, prices are rising — and this is a global trend, not only in Ukraine but throughout the world. This is influenced by the exchange rate (due to the import component in production) and rising wages against the backdrop of a staff shortage. Retailers do not include the cost of generators directly in the price. On the contrary, chains often restrain growth. Contracts with suppliers are usually concluded for six months or a year with fixed prices, and even in difficult conditions, the parties fulfill their obligations. Price increases are possible mainly in seasonal categories — vegetables, fruits, especially at the end of the year. In the spring, with the arrival of the new harvest, prices are traditionally adjusted downward,” Zhuk explained.
What was the situation after the Russian attack?
In early January, the energy situation in Kyiv deteriorated significantly due to the massive shelling on January 9. Information began to spread on social media that many supermarkets in the capital and the region could not withstand the power outages and were limiting their hours of operation or closing. However, retail chains later began to issue official statements. For example, the ATB press service stated that their chain of stores had temporarily introduced technical breaks due to the increased load on generators amid prolonged power outages. At the same time, the company emphasized that they did not plan to close or reduce their working hours — all stores continued to operate.
Novus and Silpo reported at the time that some of their stores had temporarily suspended operations due to power outages.
