In the CCI believe that the restriction of the margins of retailers will lead to higher prices

© RIA Novosti / Valery Melnikova in fotoreceptori in the sales area of the hypermarket Karusel. Archival photoIn the CCI believe that the restriction of the margins of retailers will lead to higher prices© RIA Novosti / Valery Melnikovite the image Bank

The introduction of restrictions on markups on products in retail chains may lead to higher prices and reduced choice on the shelves, said in an interview with RIA Novosti President of the chamber of Commerce and industry (CCI) of the Russian Federation Sergey Katyrin.

In early may, one of the Russian consumer organisations, the national Union of consumer protection proposed to restrict the margin of trading networks to the prices of the products. According to the authors of the initiative, it will help to satisfy the public’s demand for high quality products and to support manufacturers. A similar idea has drawn criticism from retailers and associations of consumers and producers.

«The size of the margin depends not only on the initiative of the seller, wishing to earn, but consists of many costs, among which, the same rents, taxes, transportation costs and other factors. There is a certain risk that with the limit on markups, consumers may be faced with the problem of rising prices and reduced choice on the shelves,» said Katyrin, commenting on this idea.

He added that at the moment, we should talk about more effective development of a competitive environment for representatives of small sized trade, not about restricting retailers.

«We need to support the brick and mortar trade, perhaps through incentives, lower rents and taxes, creation of wholesale markets of procurement and so on», — said Katyrin on the eve of the St. Petersburg international economic forum which will be held in early June.

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