The Minsk Metropolitan Union of Entrepreneurs and Employers, despite the growth of RTO, notes the difficult situation in retail and proposes measures to transform the trade sector in Belarus.
Co-chairman and director of the union Viktor Margelov told MyFin that now is the time to consider the role and place of trade in the country. If nothing is changed, there may be dire consequences for the economy of the entire country.
Problems in retail
The effect of Resolution No. 713 led to a decrease in the gross income of food retail enterprises by an average of no less than 15% with similar revenue.
The growth of online commerce and large retail chains is leading to the ruin of small businesses.
There are unequal business conditions for small and large enterprises in the retail trade sector (special delivery conditions, economically unjustified discounts and prices from manufacturers and importers).
The effect of Resolution No. 713 has led to the fact that it is much more profitable for large retail chains to directly purchase imported goods than to work through importers.
The low profitability of retail enterprises has led to an acute shortage of personnel in retail trade, especially in small towns and rural areas. The average accrued salary of salespeople at retail enterprises in the regions is only 700-800 rubles, which is more than 2 times lower than the average salary in the country.
Dear acquiring. Banks' income from acquiring is comparable to the wage fund of 600 thousand trade workers.
What do business union experts suggest?
Reducing the list of goods subject to state regulation of pricing for small businesses in populated areas where they are not the only sellers.
Creating conditions for the priority development of domestic trading enterprises, establishing a procedure for opening retail trade facilities by foreign investors, and in small towns and domestic ones (when opening facilities with a retail area of more than 300 sq.m.) with the approval of local authorities together with business entities implementing similar range of goods in a given territory (German experience).
Establishing a moratorium on the opening of new retail facilities with a retail area of more than 3,000 square meters until the adoption of a scientifically and economically sound methodology for the feasibility of their placement and assessment of the acceptability of negative consequences for other market participants.
Establishing a maximum share of revenue from retail trade enterprises with a share of foreign owners of more than 50% in the authorized capital at a level of no more than 35% of the total turnover according to the established list of groups of goods important for national security.
Expanding the list of goods sold by Belarusian manufacturers to Belarusian retailers at a single price without other additional conditions (US experience).
Reducing the administrative burden on the activities of small enterprises, including in the retail sector, radically reducing and simplifying document flow.
Exclusion of forms of goods and waybills from the list of strict reporting forms due to their complete duplication on the portal of the Ministry of Taxes and Taxes of electronic invoices.
Formation and implementation of complex unified systems of joint services for the population in rural areas using modern technological platforms that ensure acceptable profitability of this activity.
Establishing maximum acquiring rates for the period of government regulation of pricing at the level of 1% for cards of Belarusian issuers.