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
Disclaimer: This article was contributed and translated into English by Emil Lazarian. While we strive for quality, the views and accuracy of the content remain the responsibility of the contributor. Please verify all facts independently before reposting or citing.
Direct link to this article: https://www.armenianclub.com/2013/03/31/reluctance-to-let-carrefour-in-is-cowardice-of-local-monopolists/
