Russia – Supermarket competition

"This law not only restricts the development of the Russian retail, but gives an advantage to foreign players, which have an opportunity to start a massive expansion of the Russian market," – Galitsky believes.

According to Galitsky, the new law gives an advantage to such chains as Auchan and Metro which specialize in working in large retail formats.

Galitsky also added that, "the development and adoption of laws in the consumer sector without the involvement of professionals is a «dangerous thing»."

Recall that the new law implements an anti-monopoly limitation – the so called network level limit, saying a network cannot occupy more than 25 percent of the local food market in a region. A network exceeding the limit cannot buy retail shops in the region for any reasons. This limitation came into force on February 1 in Russia’s all districts and regions with the exception of Moscow and St. Petersburg, and from July 1 in all Russia’s cities and towns.

News source: Meat Trade News Daily