Recommendations developed by the Price Study Commission (Komissiya po izucheniyu tsen) may contribute to market regulation in the long term, but they will not lead to price reductions in the short term, stated Lasha Rizhamadze, head of the Association of Distributors.
The processes occurring in the market have been developing for many years, and the expansion of logistics infrastructure is a natural and inevitable stage that will gradually affect all participants, he says.
“The market has been developing in this direction for years: both representatives of distribution networks and retail chain facilities are expanding their logistics centers, and this is an inevitable process; we will eventually reach this point anyway.
The impact that larger logistics centers will have on the overall price level is a separate matter for discussion. Undoubtedly, the impact will be positive, but likely not significant enough for consumers to feel a substantial price decrease.
The regulatory legislation in question will actually help establish fair rules of the game, which will ultimately lead to price stabilization rather than their reduction in the short term,” Rizhamadze stated.
Lelo member on the Price Study Commission: it is an act of political schizophrenia
