Retail Chains in Russia: Some Aspects of State Regulation
Abstract
The objective of this paper is to substantiate some proposals for improving state regulation of the retail network in Russia. In some regions of Russia, there is a lack of retail supply for the population, which requires government support for retail network development. State regulation of the trading network in Russia is carried out via establishing by the authorities of Russia’s administrative regions and local authorities of the minimum standards for public provision of trading floor space. However, only 3% of municipalities in Russia develop these standards; it reflects a low practical significance of the established indicators. The authors made a hypothesis that the indicators of retail floor space per thousand inhabitants, used as standards for the minimum public retail supply in Russia, need to be replaced due to the market development of trade. To test the hypothesis, the papers by authoritative authors on similar issues were studied, which revealed the use of population indicators based on the number of enterprises as a standard in countries with developed markets. A study of the current methodology for standardizing indicators in Russia was also conducted, which showed its insufficient academic rationalizing. According to the results of the study, it was proposed to change the indicator of the minimum public retail supply standard and use the norm of the number of trade organizations per capita, differentiated by the forms of trade. The recommendations of this paper provide the basis for improving the current legal acts on the regulation of norming retail chains in Russia. This study may be interesting for countries with similar conditions for the development of the retail network (a sparsely populated large part of the country, inaccessibility of some settlements, low state stimulation of retail within unprofitable territories).
References
[2] Chkalova, O.V. 2013. Trade. Organization, technology and design of trade enterprises. Moscow, Russia: Infra-M (in Russian).
[3] Christaller, W. 1966. Central places in southern Germany. Translated by Carlisle W. Baskin. Englewood Cliffs, USA: Prentice-Hall. DOI: https://doi.org/10.1177/000271626636800132.
[4] Huff, D.L. 1963. A probabilistic analysis of shopping center trade areas. Land Economics, 39: 81-90.
[5] Ivanov, G.G., Mayorova, E.A., and Nikishin, A.F. 2016. Social trading performance in Russian Regions. International Journal of Economic Research, 13 (9): 3991-3999.
[6] Karashchuk, O.S. 2018. Improvement of the state regulation of the retail trade network of Russia. Vestnik of the Plekhanov Russian University of Economics, 102: 152-163. Available at: https://cyberleninka.ru/article/n/ sovershenstvovanie-gosudarstvennogo-normirovaniya-roznichnoy-torgovoy-seti-rossii (in Russian).
[7] Krasil'nikova, E.A., Mayorova, E.A., Nikishin, A.F., and Pankina, T.V. 2017. Investment activity in Russia’s regions. European Research Studies Journal, 20 (4): 509-521.
[8] Losch, А. 1954. The economics of location. New Haven and London, England: Yale University Press. Available at: http://www.economia.unam.mx/cedrus/descargas/economicsoflocat00ls.pdf.
[9] Luce, R. 1959. Individual choice behaviour. New York, USA: John Wiley & Sons. 153 pp.
[10] Mayorova, A.N., et al. 2018. Analyzing regional differences in the condition and development of trade in Russia. Entrepreneurship and Sustainability Issues, 6(2): 927-938. DOI: http://doi.org/10.9770/jesi.2018.6.2(30).
[11] Mayorova, E.A. 2018. Comparative analysis of the state and development of trade in Europe. Research azimuth: Economics and management, 22 (7): 173-176. Available at: https://elibrary.ru/item.asp?id=32848369 (in Russian).
[12] Ovcharova, L.N., and Popova, D.O. 2013. Income and expenditures of Russian households: What has changed in the mass consumption standard. World of Russia. Sociology. Ethnology, 3: 3-34. Available at: https://cyberleninka.ru/article/n/dohody-i-rashody-rossiyskih-domashnih-hozyaystv-chto-izmenilos-v-massovom-standarte-potrebleniya (in Russian).
[13] Reilly, W.J. 1931. The law of retail gravitation. New York, USA: W.J. Reilly, Inc, 75 pp.
[14] Serebryakov, S.V., Schmerling, K.G. and Malakhov, P.I. (1968). Planning of the city trade network. Moscow, Russia: Economica (in Russian).
[15] Shaklanova, R.I., and Yusova, V.V. 2014. Trade branch economics. Moscow, Russia: Yurayt Publishing House (in Russian).
[16] Zyryanov, A.V. 2006. Placement of trade enterprises. Moscow, Russia: Economist (in Russian).
[17] *** Federal Law 2009 of 28.12.2009 № 381-FZ ‘On the Fundamentals of State Regulation of Trade Activities in the Russian Federation’.
[18] *** GOST R 51303-2013 (2013) of 01.04.2014. National standard of the Russian Federation. TRADE. Terms and definitions.
[19] *** Order of the Ministry of Industry and Trade of the Russian Federation 2014 of 25.12.2014 №2733 ‘Strategy of Trade Development in the Russian Federation for 2015-2016 and until 2020’.
[20] *** Order of the Ministry of Regional Development of the Russian Federation 2010 of 28.12.2010 № 820 ‘SP 42.13330.2011. Code of rules. Urban planning. Planning and construction of urban and rural settlements. Updated version of SNiP 2.07.01-89’.
[21] *** Resolution of the Government of the Russian Federation 2016 of 09.04.2016 №291 ‘On the approval of the Rules for the establishment by the constituent entities of the Russian Federation of standards for the minimum provision of the population with the area of retail facilities and the methodology for calculating the standards for the minimum provision of the population with the area of retail facilities’.
[22] *** Trade in Russia. 2017. Statistical Compendium. Moscow: Rosstat.
The Copyright Transfer Form to ASERS Publishing (The Publisher)
This form refers to the manuscript, which an author(s) was accepted for publication and was signed by all the authors.
The undersigned Author(s) of the above-mentioned Paper here transfer any and all copyright-rights in and to The Paper to The Publisher. The Author(s) warrants that The Paper is based on their original work and that the undersigned has the power and authority to make and execute this assignment. It is the author's responsibility to obtain written permission to quote material that has been previously published in any form. The Publisher recognizes the retained rights noted below and grants to the above authors and employers for whom the work performed royalty-free permission to reuse their materials below. Authors may reuse all or portions of the above Paper in other works, excepting the publication of the paper in the same form. Authors may reproduce or authorize others to reproduce the above Paper for the Author's personal use or for internal company use, provided that the source and The Publisher copyright notice are mentioned, that the copies are not used in any way that implies The Publisher endorsement of a product or service of an employer, and that the copies are not offered for sale as such. Authors are permitted to grant third party requests for reprinting, republishing or other types of reuse. The Authors may make limited distribution of all or portions of the above Paper prior to publication if they inform The Publisher of the nature and extent of such limited distribution prior there to. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in The Paper. This agreement becomes null and void if and only if the above paper is not accepted and published by The Publisher, or is with drawn by the author(s) before acceptance by the Publisher.