Interview with the Head of Spar

How Can Bread, Butter, and Other Staples Become Cheaper?

Paul Bacher (55) has been the managing director of Spar in Upper Austria since October 1. Including Interspar and Maximarkt, Bacher is responsible for around 280 stores.(Bild: Horst Einöder/Flashpictures)

Paul Bacher (55) has been the managing director of the Spar retail chain in Upper Austria since October. In an interview with the “Krone,” he discusses the VAT reduction, deceptive packaging in retail, and the demise of competitor Unimarkt.

“Krone”: The VAT cut has been in effect for a month. Your private-label butter has become less than ten cents cheaper. A much-needed relief or just a smokescreen?
Paul Bacher: It was a major transition process and incurred high costs for us. But now, a month later, I’d say: We had imagined it would be worse. Consumers haven’t shown much interest in it.

So more costs for your company than savings for households?
It’s being reported that consumers are saving eight euros a month. I think it’s actually more than that, because prices have gone down recently. But I drive past a gas station every day: those eight euros are quickly eaten up by rising gas prices.

What changes would need to be made to make butter, bread, and other staples more affordable?
Prices are subject to global trends. What we learned from the energy crisis of 2022 and 2023 is that energy is the key lever. When energy costs rise, that impact trickles down through every stage of production.

Energy is the key lever. When energy costs rise, that impact trickles down through every stage of production.

Paul Bacher, Geschäftsführer von Spar Oberösterreich

Since April, “shrinkflation”—that is, deceptive packaging—has had to be labeled as such. How often do manufacturers fill packages with less product while keeping the price and package size the same, thereby deliberately deceiving customers?
I can’t recall a single product we’ve carried since this regulation was introduced that was affected by it. We’ve consistently said: We don’t want it. We’ll then delist that product.

So does the law act as a deterrent for manufacturers?
Definitely. The industry certainly reacts to a law like this.

Spar has taken over five Uni markets in Upper Austria. Why?
We sought to acquire a package that included locations where we weren’t represented. Overall, we sought more locations but ended up with fewer in Upper Austria than we would have liked.

I was very sorry to see Unimarkt exit the market.

Paul Bacher, Geschäftsführer von Spar Oberösterreich

Did Unimarkt have better offers, or was it due to competition law?
There were locations where the Federal Competition Authority would have vetoed the deal.

Spar Upper Austria has around 280 stores. How many are you aiming for in five years?
There are very few gaps in coverage where Spar stores might still be added. Our main focus right now is on improving store locations—that is, securing larger sales areas.

What’s the strategy behind larger stores?
Simply the need to offer customers a wider selection. Organic products are on the rise, and there are new trends—vegan and vegetarian, for example.