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On Wednesday, the government ruled that all stores, supermarkets and service points are prohibited from trading in temporary outlets (with the exception of food, pyrotechnics and commercial islands), that is, when the commerce is not carried out in physically segregated stores but in common supermarkets, corridors, for example. and etc.
It is also recommended to recommend the use of short-term sales promotion measures (sales, discount hours, tastings, etc.) in all stores, supermarkets, markets and other public outlets, which increase the flow of buyers and visitors. in a very short time and in a real place. This does not apply to online marketing.
During the government meeting, the President of the Competition Council, Šarūnas Keserauskas, stated that due to the restrictions introduced, prices may increase and competition laws may be violated.
“No impact assessment has been carried out, however, it is necessary to take into account the potential impact. The effect will be the simplest to look for: higher prices for goods that are no longer discounted. Another thing is that The recommendation itself is very vague and may lead to coordination between competing suppliers and retailers to clarify the specific concepts used in the recommendations. For example, which goods cannot be discounted, in which places, for how long. ( …) Price increases can last much longer than a very short period, these could be negative consequences.
Will higher prices reduce traffic? Since we have it before Christmas, people will continue to buy gifts and certainly not all people will switch to online shopping. The question is whether it has been estimated how much that traffic will decrease or if it will decrease enough to produce effective results. As the recommendation can be very vague, the consequence may be that short-term incentives do not apply to basic foodstuffs: yogurt, bread, butter. You can see that these types of actions are frequent ”, Š. Keserauskas.
Saulius Skvernelis, the acting prime minister, responded that traders should indicate that coronavir is also available for free when reporting stocks.
“If promotions and discounts, which are a headache for someone here, merchants could, if they follow this logic, advertise in full: buy two yogurts for the price of one and get the Covid-19 virus for free, it would be very clear. The same must be said for mass sales, Black Friday or Yellow Saturday – good price and potentially free virus, lottery – you can consider who can succeed, receive or not. There are recommendations, instructions that are accepted, the only one detail: you have to follow them, follow common sense. If there is an economic interest over health, then none of the instructions will work “, said S. Skvernelis.
If you follow the logic of full advertising – buy two yogurts for the price of one and get the Covid-19 virus for free – that would be very clear.
Saulius Skvernelis
Acting Health Minister Aurelius Veryga stressed that this is a recommendation, not a ban.
“In fact, if we made quarantine decisions on this principle, evaluating all the possible consequences, evaluating them for a long time, we probably would not be able to make any decisions.” I would like to remind you that this is a great recommendation, which, as I said, was very similar in effect in the spring. This did not exclude the application of food discounts. The goal is very simple, so there are no massive invitations to Black Fridays or anything like that. This is not a prohibition, it is a recommendation agreed with the associated structures. I don’t see any threat here, “said A. Veryga.
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