Falling retail sales to reduce assortment of products in medium and high price segment
According to the National Statistics Committee, retail trade turnover in Belarus decreased by 3.5% in January-October 2016. The negative trend was due to the fall in real wages by 4.1% and the growth in utility costs. Retail trade turnover is likely to continue to reduce against the background of eroding household savings. Major retail chains may rearrange available space in order to attract new tenants from other consumer market segments and layoff some administrative and technical staff. New shopping facilities are likely to open only in the regions with high wages. Given the expected decline in the average ticket at shopping sites, assortment of products in the high and medium price group is likely to reduce and some costly goods may disappear from the shelves of retailers.
According to Decree No. 221 of June 23rd, 2017, deadlines for the completion of foreign trade operations have been extended from 90 to 180 days for exports and from 60 to 90 days for imports. Delayed payments entailed a fine up to 2% of the transaction cost for each day of the delay, but could not exceed the total cost of the transaction. Most companies, when working with new counterparties, require a deferred payment for a period of three to six months. Due to the new regulation, violations are likely to reduce in number, so as the fines. Trade enterprises are likely to expand the assortment list due to the supply of new products in small lots, and the assortment list of exported Belarusian goods could expand, too. The new terms for completing foreign trade transactions would enable medium and small companies on the foreign trade market, exporters and importers are likely to grow in number and the geography of export-import operations could expand.