About Br1 trillion invested in the development of Vitebsk's trade infrastructure over three years

Approximately Br1 trillion has been invested in the development of the trade sector infrastructure in Vitebsk over the past three years, as reported to a BELTA correspondent by Zinaida Koroleva, Deputy Chairperson of the Vitebsk City Executive Committee.

Currently, the regional center hosts 2.4 thousand trade and public catering facilities, 11 shopping centers, and 7 markets. The majority are privately owned. The provision of retail space per 1,000 residents has increased from 353 sq.m in 2009 to 510 sq.m as of April 1st of this year, and the availability of public catering outlets has risen from 22.4 to 35.5 places, respectively. "These figures have been achieved through the reconstruction and modernization of existing facilities, as well as the construction of new ones," emphasized Zinaida Koroleva.

The city continues its efforts to ensure a balanced supply and demand in the consumer market, improve the material and technical base of trade enterprises, and introduce new forms and methods of sales.

Approximately 35% of the retail turnover of the Vitebsk region is accounted for by Vitebsk. Over the last three years, the annual growth in retail turnover for the regional center has been at least 15%, and for the first quarter of this year, it was 19.5%. In dollar equivalent, retail turnover per capita was $2.8 thousand in 2012, and considering the first quarter, this indicator is projected to be at least $4 thousand. The efficiency of the city's trade enterprises is characterized by positive sales profitability dynamics. According to preliminary data, the sector is expected to generate at least Br45 billion in net profit for January-March.

Zinaida Koroleva also noted that the emergence of new operators in the city's consumer market stimulates competition between large retail facilities and convenience stores. The regional center hosts six "Evroopt" chain stores with a total retail area exceeding 9 thousand sq.m. Their share in Vitebsk's retail turnover is over 11%. The facilities are located on main streets and meet modern architectural requirements. In October 2011, the "Korona" shopping center of "Tabak-invest" LLC opened at the entrance to the city. At the end of last year, retail outlets of the "Rodnaya Storona" chain appeared in Vitebsk's consumer market, and this year – outlets of the "Sosedi" chain. The "Mila" retail chain is gaining momentum; its outlets are typically located in residential buildings and offer customers a wide range of perfumes, cosmetics, and household chemicals.

In addition, investment agreements are being implemented and retail facilities of the "Rapa" chain are under construction, and negotiations are underway with the Belarusian-Lithuanian company "Rivona" for the construction of retail facilities of the "Norfa" chain. Thus, in 2013-2014, other operators will appear in the regional center.

"This serves as an incentive for trading organizations that have long been operating in Vitebsk's consumer market, whose stores fully fit the definition of 'convenience store,' to seek new approaches in their development," emphasized the Deputy Chairperson of the City Executive Committee.

For example, active work is underway to modernize, reconstruct, and build retail facilities for "Vitebskiye Produkty" OJSC, which operates 31 stores. The construction of another facility is ongoing, with its commissioning scheduled for 2013. "Vesta" OJSC plans to open two more retail outlets this year (with a total of 51 stores, accounting for over 11% of the city's turnover).

The city continues to repurpose apartments on the first floors of residential buildings. After reconstruction, service and retail outlets of the convenience store format are opening in these spaces.

"In general, the Vitebsk City Executive Committee equally supports and stimulates the development of both large retail chains and small retail outlets. The main requirements for retail operators are a high culture and quality of customer service, the saturation of the retail network, including with goods from manufacturers of the regional center and the region, a loyal price factor, incentive measures in employee remuneration, and break-even operation," noted Zinaida Koroleva.