Chavez cracks down on price gouging retailers, establishments to check prices
18 Jan 2010
Hugo Chavez, president of Venezuela has ordered the expropriation of Hipermercado Exito stores following allegations that the retailer broke the law by hiking prices and hoarding goods.
The president said yesterday on state television that the country would change its laws if necessary to acquire the French-owned Casino Guichard Perrachon SA of Saint-Etienne, and Colombian-owned Almacenes Exito SA of Medellin, Colombia.
''I order that we develop a dossier and prepare a new law to take over the Exito chain,'' Chavez said. ''Repricing and hoarding, what is this? You have to respect our house.''
Following a currency devaluation on 11 January, Chavez's government closed four Exito outlets for a day because the company allegedly increased prices violating law.
The closures did not have a financial impact, Almacenes Exito, Colombia's biggest retailer, said in a 12 January securities filing. According to the filing, Almacenes Exito owns a minority stake and licenses the name to the Venezuelan retail chain.
Chavez is seeking to keep prices in check following his devaluation of the bolivar currency from 2.15 to the dollar to a split rate in which some importers can buy dollars for 2.6 bolivars while others must pay 4.3.
