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Busy Place: Synergy of Small Businesses and Malls

Date: March 28, 2024 Time: 23:05:24

Photo: Pelagia Tikhonova/AGN Moscow

The Russian Ministry of Industry and Trade recommended that regional leaders give places for trade to small and medium-sized businesses near shopping centers. They offer to provide trading venues without bidding, on preferential terms or for free.

The details were found out by journalists from Komsomolskaya Pravda.

What will the pavilions be like with the products of small entrepreneurs?

Pretty. Modern non-stationary retail stores are not 1990s tents and clothes are not tried on behind a screen on a cardboard.

The modern format of non-stationary trade is high-tech pavilions and mobile trucks full of modern and aesthetically pleasing equipment; its presence in the territory, for example, in the pedestrian zones of the cities, by itself creates the comfort of a modern urban. space. There are many such examples, and not only in Moscow and St. Petersburg. Many Russian cities can boast of beautiful style solutions. The Ministry of Industry and Trade annually conducts the competition Trade of Russia – this is how the department determines the best practices of the regions in a variety of formats, including among non-stationary and mobile shopping facilities. Ultimately, how these or those non-stationary objects look in the regions is the area of ​​​​responsibility of local authorities, which determines the uniform rules for placement, including the style of small retail premises.

What should be the end result of this initiative?

The end result is to locate mobile rather than stationary retail facilities close to the commercial traffic of large retail chains. Objectively, due to this, firstly, the diversity of products is increasing, and secondly, the conditions for the sale of products by small and medium-sized enterprises, which are mainly producers of agricultural and food products, are expanding, including agricultural products, textiles, clothing and footwear. Consumer cooperation organizations (consumer cooperatives) also have the opportunity to sell their products in this way.

Why not open these points in the shopping centers themselves?

The reason is quite obvious: many small businessmen and farmers often simply cannot “pull” the cost of rent in large shopping centers with strong trade traffic. There are also a number of objective difficulties for small businesses – these are the requirements for a sufficiently large volume of production, for compliance with a strict delivery schedule and delivery to a distribution center located, sometimes, in another region .. Such conditions, unfortunately, are often physically unfeasible for small entrepreneurs; therefore, the products of such manufacturers are now not presented in retail chains (including those located in shopping centers) or are presented in an insignificant amount. Small retail facilities, including non-stationary ones, cannot generate high customer traffic on their own. But by joining the existing stream of buyers, they can synergistically increase consumer activity by expanding the supply of products, for example, agricultural products that are in demand among Russians.

By the way, family fairs give a similar effect to everyone: the more sellers and more options, the more buyers.

Who should provide small business owners with business locations near the traffic of large retail chains?

On the part of the federal authorities, these are recommendations on how regional authorities should act to support small businesses in our difficult time.

When implementing the initiative to place mobile and non-stationary shopping facilities near the big shopping malls, the local authorities, the owner of the shopping malls, the small businesses that want to open their outlets near the shopping mall should act as partners, discuss conditions and all wishes. Only in this way any innovation or proposal in the field of commerce can be implemented in a harmonious, correct and convenient way for all participants. It should be noted that the proposals of the Ministry of Industry and Trade of the Russian Federation have already been supported by a number of large retail chains, the agricultural community (“Association of Peasant Enterprises (Farmers) and Agricultural Cooperatives”) and representatives of shopping centers of the country (“Russian Union of Shopping Centers”).

Will this initiative scare away buyers?

No. On the contrary, it will attract new customers. Malls and chain stores (with a competent neighborhood scheme with non-stationary retail facilities) will receive an overall increase in both customer traffic and sales, and against the backdrop of last year’s drop in attendance, it is unlikely that many shopping centers want to increase the additional flow of customers.

Important note: on municipal land, the municipal authorities carry out the placement of non-stationary and mobile commercial facilities, they also determine the appearance (style) of the commercial facility, the permissible number of such objects and other conditions. But on the sites owned or leased by the owners of shopping centers, the authorities cannot place non-stationary and mobile shopping facilities by themselves. Accommodation in this case, as is customary, is possible only jointly and in agreement with the owners of shopping centers.

As for the requirements that sellers must meet, they are absolutely standard, exactly the same as those required by law for any seller working in the field of trade in Russia, be it a hypermarket or a small retail store.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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