Author Archives: CrispConsulting

Fruit and vegetable prices in Russia higher than in Ukraine

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According to Fruit-Inform Project, wholesale prices for fruits and vegetables in Russia are currently 14.7% higher than in Ukraine. The difference in retail prices is even more significant, as Russia has more expensive logistics and higher number of resellers on the products’ way to consumers. According to our estimates, retail prices for fruits and vegetables are currently 30-35% higher than in Ukraine.

Fruits and berries are averagely 34% cheaper in Ukraine than in the Russian Federation mainly due to considerably lower prices for seasonal fruits. At the same time, imported products (citrus fruits and bananas) in Russia are lower in price than in Ukraine. This fact is connected with larger volumes of the market in the Russian Federation, which lead to lower prices for Russian buyers. In addition, logistics of imported products entering the port of Saint Petersburg costs lower.

Source: www.freshplaza.com

Food Retail Chains Accounted for 27.2% of the Total Retail Turnover in 2010

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In 2010 food retail chains started to recover from the economic recession. The revenues grew faster than in 2009, which is partly due to the low base effect. According to RBC.research, food retail chains, selling FMCG, accounted for 27.2% of the total retail turnover and added 0.7 perecentage points in comparison to 2009. Federal and international retail chains were developing quite successfully and increased the number of new stores by 20-30%.

Though the development of food retail chains in 2010 could be more dynamic, as it was put on the brakes by slow construction of commercial real estate and the shortage of suitable retail premises. Lots of new stores were opened behind schedule.

Source: www.retail.ru

Auchan to Treble the Number of Hypermarkets in Russia

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The French Retail Chain Auchan is planning to treble the number of hypermarkets in Russia and make it 150. To date the company operates 44 hypermarkets – 28 under the brand name Auchan, 14 Auchan-City and 2 hypermarkets Raduga. New stores, which will be opened in the next 5 years, will occupy from 10,000 to 20,000 sq m. Apart from hypermarkets Auchan is developing a chain of 747 supermarkets in 5 countries. Hypermarkets account for 80% of the turnover (34.2 billion euros a year), supermarkets – for 16% (6.9 billion euros a year). After expanding in the Moscow Region Auchan will concentrate on opening new supermarkets in other regions – Krasnodar, Yekaterinburg and St. Petersburg.

Source: www.retail.ru

X5 Revenue to Grow in Q2 2011

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X5 Retail Group, Russia’s largest supermarket chain by revenue, reported sales growth of 41%  in Q2 on consumer demand and after acquiring the Kopeika food store chain.

Net retail sales climbed to 112 billion rubles ($4 billion) from 79.8 billion rubles a year earlier, X5 said Friday in a statement.

Growth rates slowed in Q2 from the first three months of the year as real incomes declined, which is expected to continue in Q3, chief executive Andrei Gusev said in the statement. Demand will probably rebound in the last three months, he said.

Source: www.freshplaza.com

Magnit sees 58.7% Revenue Growth in H1 2011

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Russian food retailer Magnit reported on Monday a 58.7% year-on-year increase in revenues in H1 2011, spurred by the opening of 405 new stores. The company said that in dollar terms net retail sales reached $5.47 billion. In rouble terms, sales grew 51% in H1 to 156.53 billion roubles. Like-for-like sales grew by 18.6% compared to the corresponding period a year ago. At the end of June, the company operated a total of 4,460 stores, vast majority of which are convenience stores.

Source: www.freshplaza.com

Customs Union to Zero Import Duties on Cucumbers and Tomatoes

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The Customs Union Commission of Russia, Kazakhstan and Belarus zeroed import duties for some fruit and vegetables till 1 August. Import duties as large as 0% are imposed on tomatoes, cucumbers, gherkins and apples. The decision to zero import duties was made on 7 April 2011 and comes into force on 5 July 2011.This is already the second time when Russia, Belarus and Kazakhstan decide to zero import duties. This already happened in November 2010 in regards to cabbage, potatoes and buckwheat, due to the poor crops of 2010.

Source: www.retail.ru

Apple consumption sharply reduced in Russia

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According to Fruit-Inform Project’s estimates, in the season 2010/11 the fresh apple consumption in the Russian Federation was the lowest over last 3 seasons. This is caused by high apple prices in the world and sharp decrease of the domestic apple production in Russia.

“Reduction of the fresh apple consumption amounted to 12% in the season 2010/11. However, the value of Russia’s apple market increased by almost 40% that is connected with more than 50% growth of apple prices in the country”, Tetiana Getman, Head of Fruit-Inform Project, says. “Moreover, the share of domestic apples in the Russian market was the lowest over last 5 years”.

Source: www.freshplaza.com

Russian Food Retail to Grow by 22%

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In 2010 Russian food retail sector experienced recovery following the rebound of the Russian economy. The increment of growth of retail earnings was more significant than in 2009 due to the low base effect. In 2010 food retail chains accounted for 27.2% of the total food retail turnover in Russia. As per RBC.Research, in USD terms food retail turnover in 2010 grew by 22% y-o-y. In Rub terms the increment of growth was lower due to the strengthening of ruble and made 16%, which is 8 percentage points less than in 2009.

Source: www.retail.ru

SPAR to Develop in the North-Western Region

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The SPAR International company, which operates the supermarket chain Spar, has concluded license agreement with trade house Intertorg (supermarket chains Narodnaya Semya and Idea). Under this agreement TH Intertorg receives an exclusive right to operate supermarkets under the brand Spar in the North-West of Russia, including St. Petersburg and Leningrad Region, the Republic of Karelia and Petrozavodsk, Pskov and Pskov Region, Vologda and Vologda Region, Velikiy Novgorod and Novgorod Region. Spar will be consulting Intertorg on marketing, logistics, HR, sales and other issues.

Spar – is one of the world’s largest retail chains, operating 16,000 supermarkets in 34 countries. It entered the Russian market in 2000 and has already opened 244 supermarkets since then. Intertorg is planning to open the first supermarket under the Spar brand in summer 2011.

Source: www.retail.ru

Earnings of Dixy Increased by 21.6% tо Rub 31.2 bln

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One of the largest food retailers in Russia OAO Dixy reported earnings growth by 21.6% in the first 5 months in 2011 to Rub 31.2 bln. In the financial  year 2010-2011 the company experiences significant rebound after the recession. As per IFRS the company’s earnings have been growing since 2005. After two years of profit growth in 2005-2007, the company suffered from losses during the financial crisis 2008-2009. To date the net profit index is back into the black, but hasn’t reached the pre-crisis level yet.

Source: www.retail.ru