Market News

Magnit opens new distribution center in Dzerzhinsk

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OJSC Magnit, one of Russia’s largest hypermarket chains, has opened a new distribution center in Dzerzhinsk, Nizhniy Novgorod region.

Total space of the warehouse is 30,523sqm. Launch of the new distribution center is expected to improve the quality of service in the Central region.

Magnit retail chain operates 13 distribution centers with their total capacity of 299,443sqm. As of June 30, 2011, the chain consisted of 4,366 convenience stores, 66 hypermarkets and 28 cosmetics stores (drogerie) in 1,286 locations in the Russian Federation.

FMCG retailers demonstrate steady growth

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Development of the hypermarket format

In June 2011 Russia’s Top-90 FMCG retailers added 4 objects with total area increase by 9.200 sq m. In HY1 2011 the number of sales objects grew by 15, the total area  – by 32.800 sq m. In June 2011 2 new Magnit hypermarkets were opened in Nizhniy Novogorod and Chelyabinsk Regions, hypermarket “Alleya” in Krasnoyarsk Region and Prisma in St. Petersburg. As of July 1st 2011 the total number of Top-90 retailers’ hypermarkets is 484 with total area 2,958,000.2 sq m.

Development of the supermarket format

In HY1 2011 the number of Top-90 FMCG retail supermarkets rose by 73, their total area grew by 55,300 sq m. As of  July 1st 2011 there are 1,647 Top-90 FMCG retail supermarkets in Russia with the total sales area more than 1,467,000.4 sq m.

Development of the discounter format

In HY1 2011 Russia’s Top-90 FMCG retailers added 813 objects. Discounters’ sales area grew in HY1 2011 by 284,000.7 sq m. As of July 1st 2011 the total number of discounters in Russia is 9,384 with total sales area exceeding 3,300,000.9 sq m.

Development of the convenience store format

In HY1 2011 the number of convenience stores of Russia’s Top-90 FMCG retailers grew by 88 objects. Their sales area grew by 16,300 sq m. As of June 1st the total number of convenience stores in Russia is about 1,776 with total area exceeding 563,200 sq m.

Source: www.retail.ru

15 Superbrands entered the Russian market since the beginning of 2011

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International expansion of the world’s leading retail and food retail brands has been quite active in the HY1 2011. During the last 5 years the Russian market remains one of the most attractive for expansion for the largest American and European brands.

Since the beginning of 2011 3 large public catering chains entered the Russian market: the famous German fish fast-food chain Nordsee, one of America’s fast-food leaders Wendy’s and the famous Pinkberry cafes with their delicious frozen yoghurt and fruit smoothies.

Source: www.retail.ru

Russia to lift ban on EU vegetables from August 9th

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Russia will lift ban on raw vegetables from the European Union countries starting on Tuesday, August 9th, reported Russian news agencies on Monday.

Russia banned imports of raw vegetables from the European Union on June 2 due to a deadly E.coli outbreak. Moscow later agreed to drop the ban provided it received safety guarantees and has since allowed imports from some EU countries.

The EU, which exported about 600 million euros ($850 million) worth of vegetables to Russia last year, had said the blanket ban was not scientifically justified.

Source: www.freshplaza.com

X5 Retail Group introduces new convenience store concept

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The new outlets have a smaller sales area, ranging from 70 to 200 square metres and the product range includes ready meals, convenience food and fresh bakery products. X5 plans to introduce a coffee bar and Wi-Fi in the future. The retailer currently operates four company-owned stores in Moscow but plans to expand the network through franchising.

Source: en.retail.ru

Russia ready to lift EU veg import ban

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Russia’s sanitary watchdog Rospotrebnadzor is ready to totally lift a ban on import of vegetables from Europe if there are no cases of the E’Coli infections registered, Russia’s chief sanitary doctor Gennady Onishchenko said on Sunday.

Russia introduced the vegetable embargo on June 2 after the E.Coli bacteria, traced to vegetables, killed at least 40 people in Europe.

“It reassures us that the number of people, infected by the E.Coli, has fallen significantly,” Onishchenko said. “If it follows this way, we will consider the issue of the total lifting of the import ban, but with certain restrictions.”

Onishchenko said that among the countries, whose vegetables are .

As of now Spain, the Netherlands, Belgium, Denmark, Greece and the Czech Republic, Poland and France have permission to export vegetables to Russia.

Source: en.rian.ru

The Baltic Customs: Import has almost doubled

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In the HY1 2011 the cargo turnover in the region under the Baltic Customs Service control has grown and reached 12,100,000 tones. The statistic value of the registered goods amounted to $21 bln, which is 33% more than in the HY1 2010. Export grew 3% and reached almost $ 4 bln. Import grew 43% and reached $ 17 bln.

The main importing countries are China (16%), the Netherlands (8%), Ecuador (8%), Germany (7%). The leading position in the import structure is occupied by fruit, meat and meat products, polymeric materials.

Source: www.tks.ru

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