The Split-Dalmatia County ranked 17th out of 21 Croatian counties in terms of the price of basic products, with prices that are on average 5,1 percent higher than the cheapest Sisak-Moslavina County, which places it among the more expensive Croatian destinations, according to the latest analysis by the Economic Institute in Zagreb conducted on May 15th of this year.
The research was conducted based on a new government measure that obliges the largest retail chains to regularly publish updated price lists on their websites. The analysis included prices in 11 of the largest retail chains across Croatia, including Konzum, Lidl, Plodine, Spar, Kaufland, Eurospin, Studenac, Tommy, KTC, NTL and Metro, on a sample of more than 116 thousand items in 776 stores.
The results show a clear geographical division - Adriatic counties and Zagreb are among the most expensive, while continental counties, especially the eastern and central parts of Croatia, record significantly lower prices.
Split-Dalmatia County is in the group of more expensive Croatian destinations, cheaper only than Zadar County (7,9 percent more expensive), Dubrovnik-Neretva County (7,4 percent more expensive) and Istria County (5,8 percent more expensive), but only slightly more expensive than the City of Zagreb (5,0 percent). At the opposite end of the scale are the continental counties - Sisak-Moslavina County as the cheapest, then Koprivnica-Križevci County (0,8 percent), Bjelovar-Bilogora County and Požega-Slavonia County (both 1,7 percent) and Virovitica-Podravina County (2,1 percent).
The higher prices in Split-Dalmatia County reflect several key factors related to the region's touristic character. As one of the most important tourist destinations in Croatia, the county attracts a large number of visitors with higher purchasing power, which allows retailers to maintain higher prices than in continental areas.
Operating costs in tourist areas are significantly higher than in continental areas. Renting office space, especially in attractive locations such as the center of Split or the coastal zone, is many times more expensive than in the interior of the country.
Seasonality also plays an important role in pricing. During the tourist season, increased demand for basic products allows retailers to maintain higher margins, while this pattern often extends throughout the rest of the year due to the habits of the local population and continued tourist activity.
It is also worth noting that retailers covered by the government measure must publish prices in the categories of food, beverages, cosmetics, cleaning products, toiletries and household products. These products make up 30,6 percent of the total consumer basket of the average Croatian household. The analysis also showed significant differences in the prices of the same products depending on location - a kilogram of kefir from the Vindija producer was sold at prices ranging from 2,09 to 3,19 euros, while a liter of Coca-Cola Zero cost between 1,30 and 1,85 euros.
The new price transparency measure is inspired by the Israeli model that has been in place since 2015. In Israel, the introduction of mandatory price disclosure resulted in a 4-5 percent price reduction and greater price uniformity among retailers, thanks to the rapid development of price comparison apps.
Data shows that retailers covered by the measure account for 18,9 percent of retail outlets in Croatia, but generate as much as 72 percent of total revenue in the retail grocery market. The measure does not apply to smaller shops, supermarkets, gas stations and kiosks that make up the majority of retail outlets, which may limit its impact in smaller towns.
Photo: Canva/foto kreativa portal.hr / Provided by the Economic Institute Zagreb
