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Large Russian grocery retail does not dominate; does not dictate prices - Manturov

The top 10 grocery retail accounts for only a quarter of the market, the head of the Russian Ministry of Industry and Trade said

Russian Industry and Trade Minister Denis Manturov Alexei Nikolsky/Russian Presidential Press and Information Office/TASS

Russian Industry and Trade Minister Denis Manturov

© Alexei Nikolsky/Russian Presidential Press and Information Office/TASS

MOSCOW, May 19. / TASS /. It is impossible to talk about the dominance of large grocery retail chains and price mandating in Russia, the top 10 grocery retail accounts for only a quarter of the market, said the head of the Russian Ministry of Industry and Trade Denis Manturov on Wednesday.

This week it became known about two deals on the Russian market at once - Magnit's intention to acquire Dixie for 92.4 bln rubles, and the purchase of Billa Russia by the Lenta retailer for 215 mln euros.

"The level of consolidation of the Russian grocery chain retail (that is, the combined share of several of the largest retail chains in the total retail trade turnover accounted for by retail chains) significantly lags behind those of other developed countries. The top 10 of our retail grocery chains consolidates only about 25%. While, for example, in Germany this figure is 71%, in Great Britain - 60%, in Poland - 49%, in the USA - 46%," Manturov said. He recalled that retail transactions will have to be approved by the Russian Federal Antimonopoly Service.

According to Manturov, in 2020 the share of retail chains increased slightly and amounted to almost 39%, but the rest falls on non-chain trade. He also noted that the Ministry of Industry and Trade is implementing a policy of developing all trade formats, primarily small ones. In particular, the government at the beginning of the year approved an order on urgent measures to support small and medium-sized entrepreneurs in areas of trade, instructing regional authorities to increase the number of small formats of trade and objects of non-stationary and mobile trade. "The Russian Ministry of Industry and Trade holds weekly meetings on this issue to coordinate the development of small-format trade in the regions and popularize best practices. I am sure that the measures taken will promote competition between trade formats, expand the range, improve quality and lower prices for goods," he added.

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