Soho
A new draft law on trade forces retailers to build new stores themselves, rather than rent them
09.09.2011 3078

A new draft law on trade forces retailers to build new stores themselves, rather than rent them

The Federal Antimonopoly Service (FAS) has presented a second draft of amendments to the Law on Trade, which states that retail chains will be able to increase their share in the region to more than 25% only through the construction of new retail facilities. Lease of premises, according to the FAS, is not "organic growth" - too often M&A deals are masked this way.

In the first draft amendment to the law “On Trade”, the FAS prohibited any expansion of the trading network if it increased the share of the retailer in the trading entity by more than 25%. Then the project had enough opponents, and it was sent for revision. New amendments are considered “softer”: according to the new project, if the company does not have 25%, then it “has the right to carry out the construction of new retail facilities”, even if with their commissioning its share exceeds 25%. 

Most market participants, however, do not see much difference in the new text of the project. In addition, such amendments are opposed by the ministries of economy and industrial trade. The fact is that more than half of new stores are opened on a rental basis, while foreign operators in the format of hyper-supermarkets conduct their own construction.

The Kommersant newspaper quotes Ilya Belonovsky, the executive director of the association of retail companies, that retail is confused by the norms regarding development through rent. “The aim of the amendment is to prohibit M&A transactions that can lead to an increase in market share over 25%, and to allow calm organic development. But the FAS wants to prescribe this in the law in such a way that the main driver of growth for retail - rent - will not be included in the concept of "organic", that is, the implementation of the amendment in practice will be impossible ", - he will explain and hopes that the wording in the end is still will change. Writes the shopandmall website.

The Federal Antimonopoly Service (FAS) presented the second draft amendments to the law "On Trade", which states that retail chains will be able to increase their share in the region ...
5
1
Rating

Latest News

"Econika" was inspired by the culture of Morocco in the summer collection of shoes and accessories

Warm colors, rich shades, graceful silhouettes, soft shapes - all these are epithets that fit the description of the new collection of shoes, bags and accessories "Ekonika", creating which the brand drew inspiration from nature and culture...
26.05.2023 282

The Central Bank discussed the situation in the shoe market with industry unions and retailers

Today, the Bank of Russia hosted a round table in an online format on the topic: “Consumer demand and price dynamics for non-food products: main trends and prospects until the end…
25.05.2023 448

Adidas to release adidas YEEZY merchandise at the end of May

German sportswear giant adidas announced the start of sales of some of the remaining products, the controversial adidas YEEZY project, at the end of May 2023. The partnership with YEEZY ended in October 2022, from that moment on…
25.05.2023 418

Expo Riva Schuh & Gardabags preparing to open in Italy

The Italian footwear and accessories exhibitions Expo Riva Schuh & Gardabags are preparing for the summer session from June 17 to 20 in Riva del Garda, where spring-summer brand collections will be presented ...
25.05.2023 360

In St. Petersburg, 60% of the retail space of brands that left Russia were occupied by new tenants

In connection with the departure of a number of foreign fashion retailers from Russia, vacancies in shopping centers and street retail premises in St. Petersburg increased by several percentage points. However, thanks to the activity of both Russian and foreign retailers…
24.05.2023 473
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning