Market News

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

Russia’s GDP to amount to 4.5% by 2012

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Russia’s GDP is to amount to 4.2%-4.5% by 2012, the Deputy Economic Development Minister Andrei Klepach said Sunday speaking at a session of the Russian economic forum in Strasbourg in France.

He said that there are conditions for the strengthening of ruble and added that Russia’s state debt issue is in a relatively “safe harbor”.

Klepach said his ministry does not expect a drastic hike in prices on food products while the oil price is likely to exceed $100 per barrel.

Source: www.freshplaza.com

Dutch Pear Export to Russia Collapsed

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Dutch pear export to Russia  was clearly smaller in Q1 2011 than in 2010, when record quantities were exported. The exported amount of pears in 2010 is larger than in 2009, when few pears were available because of the poor harvest.

Practically all important countries of destination have bought less Dutch pears in 2011. It is, however, striking that more pears were exported to Germany. This happened mainly in January and February, after that Germany also bought less. Poland and Lithuania bought more Dutch pears, but it is quite possible that these are marked for transit to Russia, which imported far less (-57%).

Source: www.freshplaza.com

“Globus Gourmet” to Conquer European Capitals

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Premium-class food retailer Globus Gourmet has changed its expansion course in the most dramatic way. Instead of opening 15 new supermarkets in Russian cities with population exceeding 1 mln, the company decided to open 7 supermarkets in European capitals. The start of the new expansion programme, is supposed to be in London, where the company is planning to open a supermarket with total area 1.500 sq m and investment volume up to £ 4 mln. European expansion will cost at least USD 40 mln. European base rents are reported to be lower than in Moscow, whereas the consumer traffic is a little bit higher.

Source: www.retail.ru