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New law set to change dynamics of retail sector
18 Dec '09
1 min read
The Duma or the lower house of Parliament of Russia has passed in a second sitting, a controversial law on retail trade, which retailers allege will give unfair advantage to producers and suppliers of goods and may impact prices of goods, causing them to rise.
The bill which will come into force from February has introduced strict regulations on retailers, including a shortened period of payment for delivered goods, possible limits on retail prices and a cap on stores' retail margins.
Under the bill, the government will be allowed to set prices for certain kinds of goods for a period of 90 days if prices have jumped by more than 30 percent within the previous 30 days.
The legislation will also restrict retail chains, beginning from July 1, from acquiring stores if the acquisition would cause their market share in the region to exceed 25 percent and the limit will be applied to cities and municipal regions.
The bill which will come into force from February has introduced strict regulations on retailers, including a shortened period of payment for delivered goods, possible limits on retail prices and a cap on stores' retail margins.
Under the bill, the government will be allowed to set prices for certain kinds of goods for a period of 90 days if prices have jumped by more than 30 percent within the previous 30 days.
The legislation will also restrict retail chains, beginning from July 1, from acquiring stores if the acquisition would cause their market share in the region to exceed 25 percent and the limit will be applied to cities and municipal regions.
Fibre2fashion News Desk - India
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