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Reluctance to let Carrefour in is cowardice of local monopolists

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  • Reluctance to let Carrefour in is cowardice of local monopolists

    Expert: Reluctance to let Carrefour into Armenia's retail market
    proves the cowardice of local monopolists

    ARMINFO
    Saturday, March 30, 11:35


    The debates on Carrefour's possible activities on Armenia's retail
    market are continued. Everybody - experts, NGOs, mass media and
    government officials - is anxious to know if there will be a Carrefour
    hypermarket at Yerevan's Dalma Garden or not.

    "The Economy Ministry does all it can to support big investors and is
    doing nothing to prevent Carrefour's entry into the Armenian market,"
    the head of the Ministry's Business Climate Improvement Department
    Karen Vardanyan said during a press-conference on Friday.

    He said that the Carrefour hypermarket may be opened by the end of
    this year. "The only reason why this process is being delayed is that
    there are certain problems with the contract, the rent and some other
    formal procedures. Carrefour is already in Armenia and is already
    unfolding its business here," Vardanyan said.

    He believes that this will be good for the local competitive
    environment and business and service culture. "It is quite possible
    that Carrefour will decide to sell local products in its chain or even
    distribute them abroad," the official said.

    Chairman of the Standing Parliamentary Commission on Economic Issues
    Vardan Ayvazyan does not think that this issue needs so much
    discussion. "Of course, our retailers are worried as they will have to
    compete with an experienced global competitor. But we have a law
    allowing any investor to register a firm in the country," Ayvazyan
    said, adding that he sees no obstacles to Carrefour's business in
    Armenia.

    Management expert Harutyun Mesrobyan is of a different opinion: "Let's
    forget about sterile, ideal Armenia we all are dreaming of. Real
    Armenia is a country where government and business are not separated,
    where laws are on paper only, where there are no healthy market
    relations. Our monopolists are simply afraid of rivalry because they
    are not used to acting by the rules and prefer using privileges and
    administrative resources," Mesrobyan said.

    He believes that the government should protect ordinary business
    entities rather than oligarchs. "This will be a chance for us to see
    if they are actually so cool," Mesrobyan said.

    French businesswoman of Armenian origin, former advisor of Parisian
    Surch company Valerie-Aschken Gortzounian said that her working
    experience in Armenia has shown that here laws are not effective and
    the state does nothing to protect businessmen. Executive Director of
    the Union of Manufacturers and Business of Armenia Eduard Kirakosyan
    said that Carrefour may gain dominance on the Armenian retail market
    unless local retailers do something to improve their quality.

    Some mass media report that the owner of Dalma Garden Mall Samvel
    Karapetyan has cancelled his contract with Carrefour and will not
    lease the mall's territory for a Carrefour hypermarket. And the key
    person to blame for this, according to them, is Armenian oligarch,
    importer of essentials, the owner of Yerevan City trade chain, MP
    Samvel Alexanyan,

    Carrefour has over 15,000 shops and employs over 400,000 people worldwide.



    From: Emil Lazarian | Ararat NewsPress
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