X5 Requests Removal of 25% Retail Market Limit
Group X5 (chains 'Perekrestok', 'Pyaterochka', 'Chizhik') approached Vladimir Putin with a proposal to cancel the restriction for retail chains that allows them to occupy no more than 25% of the food market in municipal formations and subjects.
Consensus
- X5 submitted a letter to President Vladimir Putin on August 11 requesting the removal of the 25% market share cap for retail networks in regions and municipalities.
- The current 25% limit prevents X5 from opening new stores in areas where its existing chains already operate.
- X5 argues that the 2010-era restriction is outdated and hampers food security, especially amid drone attacks on infrastructure.
- X5 claims that large federal retail networks have the infrastructure to maintain supply stability during crises.
- X5 also proposed lowering the threshold for dominant market position from 35% to 25% to allow antitrust enforcement against monopolistic practices.
- The letter was sent on August 11, and President Putin instructed Deputy Head of the Presidential Administration Maxim Oreshkin to review the proposal.
Points of divergence
- X5 stated that the 25% limit hinders the development of its discount chain 'Chizhik' because the cap applies to the entire X5 group, not individual brands. — vesti
- X5 warned that the current limit may lead to higher prices, as small retailers cannot match the pricing of large federal networks due to higher operational costs and smaller procurement volumes. — vesti
- A 'Pятерочка' store in Saint Petersburg closed, reportedly the only one in the city. — vesti
- X5 emphasized that its extensive network enables rapid redistribution of supplies in response to infrastructure damage from drone attacks. — kommersant
Coverage (2 sources)
- Owner of "Pyaterochka" proposed removing restrictions for large retail chains — Вести
- X5 asks to cancel the ban on opening new stores in the region with a 25% share — Коммерсантъ