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Russian retailers may find long-term agreements with producers more profitable
20.09.2012 13:48
Russian retailers may find long-term agreements with producers more profitable
Ashan

 The largest food retailers, X5 Retail Group, Dixy and Ashan, have an intention to switch into long-term contracts with food producers, reports RBC Daily. A contract may be signed for three- four years instead of one year like nowadays.


      

Now the above retailers do not write the price of goods in the contracts with suppliers.  In case of making a long-term contract, the possibility of rising a price will be lost. At that, the suppliers will get the confidence in the future, and the retailers will get a stable volume of delivery.   


      

The terms of a long-term contract are not convenient for suppliers, which depend on a seasonal and currency factor. 


Author: Irina Fomina

Tags: Russian business Russian shops    

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