Russian regional chains to limit markups on 'social goods' like major retailers - ministry

MOSCOW. Aug 9 (Interfax) - Russian regional retail chains will join the system of voluntary curbs on markups on staple "socially important goods" adhered to by major retailers, the Industry and Trade Ministry reported.

This proposal was discussed at a ministry meeting with representatives of retailers and interested government agencies.

The restrictions will apply to stores' markups on seasonal vegetables, sugar, bread and dairy products.

The system of voluntary restrictions on markups, to no more than 5%, was previously introduced by major national chains such as X5 Group and Magnit , the ministry recalled.

"Such decisions have made it possible to successfully maintain a comfortable price/quality ratio for products on the consumer market in Russia in any conditions for some years," Deputy Industry and Trade Minister Viktor Yevtukhov was quoted as saying in the ministry press release.

"Statistical data confirm the positive processes in the economy and the growth of consumer activity in Russia. For example, according to recent Rosstat figures, retail sales totaled 3.83 trillion rubles in June 2023. This is 10% more in constant prices than in June 2022 and 1.5% more than in May 2023," Yevtukhov said.

Retail sales in the first half of 2023 rose by a "relatively modest" 1.1% year-on-year to 21.7 trillion rubles, "but the upward trend is steady from month to month," he said.

Sales in the food services industry grew by 14.7% year-on-year to 1.32 trillion rubles in the first half of 2023, including 12.2% to 224.5 billion rubles in June, Yevtukhov said.