Major Russian retail chains are proposing contract changes that would require suppliers to handle their own delivery to stores and warehouses, a shift experts warn will likely raise prices. According to Kommersant, citing sources, Magnit, X5 (which operates the Pyaterochka, Perekrestok, and Chizhik chains), Lenta, Metro, and Vkusvill are discussing the amendments.
Currently, large chains manage logistics themselves, using their own distribution centers and fleets to optimize costs and keep prices lower, said Mikhail Burmistrov, CEO of Infoline-Analytics. Only suppliers of perishable goods operating within a short radius deliver independently, noted Dmitry Vostrikov, executive director of the Rusprodsoyuz association.
A stricter risk-reduction approach has been proposed by the Krasnoye & Beloye chain. According to Kommersant, the retailer presented suppliers with an additional agreement that would absolve it of responsibility for goods destroyed under force majeure circumstances, which the document defines as including drone attacks. Vyacheslav Mamontov, executive director of the Association of Beer, Malt, and Beverage Producers, called shifting all risks onto suppliers unlawful and contrary to legislation. The chain itself said the initiative stems from the need to ensure supply stability amid heightened risks to warehouse infrastructure.
Producers have reacted "extremely negatively" to the idea, the newspaper reports. Burmistrov warned that shifting to supplier-led delivery "will guaranteed lead to higher costs and an increase in the wholesale price of goods." At the same time, he said, chains will be unable to raise shelf prices due to competition and will face declining margins. Vostrikov added that not all suppliers will be able to adapt to the new scheme, forcing chains to expand their pool of regional producers.
The discussions come amid Ukrainian strikes on Wildberries warehouses that began in mid-July. Over the past two weeks, at least 20 of the marketplace's distribution centers have been attacked, including in the Volga region and the Urals. More than 1 million square meters of the company's 5.2 million square meters of space have been taken out of operation. The largest destroyed facility was a 250,000-square-meter center in Elektrostal, outside Moscow, which burned completely after an attack on July 18. Earlier, Wildberries, Ozon, Yandex Market, and Megamarket amended their offers to disclaim responsibility for failing to fulfill obligations in the event of drone attacks.