Retail Threshold Debate: Regional Power to Set Store Presence

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The Ministry of Industry and Trade is examining the possibility of raising the permissible share of large retail chains in regional markets from 25 percent to 35 percent. This potential shift was discussed by Deputy Head Viktor Evtukhov, according to media reports. The discussion appears to reflect a broader push to recalibrate how dominant retailers operate within different regions of the country.

It was noted that the governor of the Tambov region, Maxim Egorov, initially proposed the idea to expand regional trade rights. The proposal has since drawn formal attention from the central ministry, signaling a possible rebalancing of local retail governance.

According to Evtukhov, a total of 21 regional authorities have already expressed support for changes to trade-law norms following regional requests. Thirteen additional regions have proposed granting themselves the authority to adjust the threshold for retailer presence in their local markets, signaling a wider appetite for regional control over retail geography.

At present, the dominance of large chains in a region is assessed by their contribution to total food sales revenue. Any new store openings by retailers must take this turnover-based limit into account, shaping how market entry is managed across the country.

Advocates of raising the threshold to 35 percent argue that it could boost the sale of domestically produced goods, broaden consumer choices, and intensify price competition. They also suggest that the change would attract investments into the construction and modernization of retail facilities, supporting regional economic activity and job creation.

Nonetheless, the ministry recognizes potential downsides for small and medium-sized businesses in retail. When a new chain enters a market, consumer attention often shifts toward the newcomer, which can slow the momentum of smaller sellers and, in some cases, force closures. This concern underscores the need to balance regional growth with the vitality of local entrepreneurship.

Regional observers in the Chelyabinsk area worry that expanding the footprint of federal chains could complicate the development of local enterprises. In contrast, officials in the Tula region argue that the existing framework already provides a balanced environment for competition and growth.

Industry players, represented by the Association of Retail Trade Companies, have called for a reassessment of the methodology used to measure local market volumes. Igor Karavaev, the association’s president, notes that advances in modern retail logistics have effectively dissolved some of the traditional boundaries that underpin current asset-share restrictions, suggesting that the rules may need updating to reflect contemporary market dynamics.

Historical context shows that Russia once relied on service centers for equipment repairs spanning multiple store networks, a practice that shaped regional support ecosystems. In light of evolving retail patterns, observers continue to evaluate how service networks and logistics influence regional retail balance.

Public discourse around what constitutes eco-friendly and organic products has also been part of the conversation, with ongoing clarifications aimed at ensuring consumers receive accurate information about product categories while retailers adapt to shifting consumer expectations and regulatory standards.

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