 : : May 2008: |
May 16, 2008, the Verkhovna Rada of Ukraine has adopted in the first reading Draft Bill #2292 On Regulation of Retail Trade of Social Groceries. The bill provided for establishment of 15-percent retail margin for a list of basic grocery products. RetailStudio has reacted to the draft bill and published its position immediately. We believe that the 'anti-inflatoin' bill was a senseless step which could not effectively halt inflation but could undermine grocery retail market insitutions. Most probably, the Governmental attempts to bound the industry stemmed from its populist policies. The outcome of this political game, however, could hit the consumers and retailers by reducing supply of 'social' groceries. Only 15% of Ukraine's retail turnover is generated by mass market. Only competition will create efficient price-regulation capacity for the Ukrainian retail market in the long run. Therefore, Ukraine has to create effective market institutions in order to stimulate retailers' growth and attract foreign players. Thus, a real competition between banners will evolve and real price wars will stir up. Download RetailStudio Is it the end of mass market? Public Paper (Rus.) Download RetailStudio press-release about the anti-inflation bill (Rus.) Download RetailStudio comment for media about the anti-inflation bill (Rus.) |