Magnet stops selling alcohol at more than 100 stores over new alcohol law
MOSCOW. Aug 9 (Interfax) - Russian retail chain Magnit has been compelled to suspend its alcohol product sales at 111 of its stores after the taking-effect of amendments to law concerning the state regulation of the production and turnover of alcohol product (171-FZ).
The reason behind the halt to the sale of alcohol is stores' proximity to markets, sporting and medical facilities, and places where large numbers of people gather, a statement issued by Magnit says.
The retailer has also temporarily ceased selling alcohol at another 144 stores due to the absence of long-term registered rental agreements. During the period August-September, more than a hundred of these will resume their trade in alcohol product after agreement-registration procedures have been completed.
Since this year began, Magnit has re-secured and registered more than a thousand rental agreements with the aim of compliance with the new legal requirements, which took force on July 1, 2012.
"We expect that the impact of this situation on company sales volume and operational effectiveness in 2012 will be unsubstantial," the company said.
The law bans the retail sale of alcohol at children's, educational, and medical organizations, at sporting arenas and on the territory adjoining them, at wholesale and retail markets, at train stations and airports, and at other places where large numbers of people congregate.
Organizations that retail alcohol product, excluding beer and beer beverages, in city areas must own, operate, manage, or rent (under agreements of one year or more) stationary selling premises and warehousing of at least 50 square meters and have cash-register check-out points. In rural areas, sales and warehouse premises are to be at least 25 square meters.