MOSCOW, January 12. / TASS /. The largest retailers, X5 Group and “Magnit” announced the voluntary introduction of restrictions on the growth of trade margins on socially important goods, according to messages from X5 Group and “Magnit” on Wednesday.
X5 Group, a leading grocery retailer in Russia that operates the Pyaterochka, Perekrestok and Chizhik retail chains, has imposed a trade margin cap on more than 20 socially important goods, including borsch set vegetables, pasta, bread and buckwheat. The amount of the margin will be determined by the market method – depending on the supply and demand in the market: the minimum level of the margin is not limited, and its upper limit cannot exceed 10%, “the message says.
Such goods will be marked on store shelves with special price tags. The restriction may be in effect during 2022, the company will cover the trading costs for these goods at its own expense. X5 Group is ready to work out the methodology together with the interested departments, its application will be more effective if other retailers, as well as manufacturers and suppliers join it, the company believes.
A similar decision was made in the Magnit network.
“PJSC” Magnit “, one of the leading Russian retailers, plans to establish a voluntary margin limit on a certain list of socially important goods. The initiative provides for the establishment of a maximum mark-up on essential goods at the level of no more than 10%, while its minimum size is not limited,” in the company message.
It is assumed that the restriction will be set on about 200 commodity items from 25 categories that make up the basic food basket of the Russian buyer, including vermicelli, borsch set vegetables, bread, milk, butter, buckwheat and others. The share of goods that fall under the voluntary limitation of the mark-up may amount to 30-40% of the turnover of socially significant goods in Magnit in monetary terms.
Both retailers view the voluntary margin cap as a mechanism to mitigate inflationary pressures on household income, the companies note.
Earlier, the Federal Antimonopoly Service of Russia announced that it had received notifications from Magnit and X5 Group to maintain a 10% mark-up on socially important goods and the intention to ensure their availability in the networks in the required volume.