Billa Slovakia fell into the red last year, becoming one of the first major retailers to report the adverse impact of the government’s consolidation measures on the country’s consumer sector.
The supermarket chain announced a loss of nearly EUR 8 million for 2025, despite boosting revenues by 5% YoY, to EUR 923 million. The result marks a sharp reversal for the retailer, which had consistently generated profits in recent years.
Compared with 2024, Billa’s bottom line deteriorated by almost EUR 16 million.
The company said rising labour costs, new taxes and changing shopping habits all contributed to the decline.
Personnel expenses climbed to EUR 112 million, an increase of roughly EUR 9 million. Billa also disclosed that it paid EUR 940,000 under Slovakia’s controversial financial transaction tax, introduced as part of the government’s efforts to reduce the budget deficit.
According to the retailer, consolidation measures have had a visible effect on household spending. Customers are increasingly seeking promotions, limiting purchases and switching to lower-priced products.
The company noted that intense competition among retailers has made it difficult to pass higher costs on to consumers, helping keep food-price growth relatively subdued.
Additional pressure came from higher transport charges, energy costs and waste-management expenses. Billa also reported growing losses linked to shoplifting and petty crime.
The chain expects the difficult market conditions to continue throughout 2026.
Management said household consumption was likely to remain weak while operating costs remained high. The retailer is therefore reviewing its investment plans and looking for additional efficiency measures across the business.
Despite the loss, Billa remains in a relatively strong financial position, with the value of its assets increasing to EUR 214 million.
The retailer continued expanding during 2025, increasing its workforce to more than 4,200 employees. It currently operates 186 stores across Slovakia and plans to open another ten by the end of this year.
Billa entered the Slovak market in 1993 and had been part of the German retail group Rewe since 1996. (The Slovak Spectator)