Market News

Russia: Strong growth expected in local retail market

Written by

The Russian retail market is expected to be worth $800bn by 2013, a sharp rise from the estimated $545bn it generated last year. According to a new study from PMR, the local market has shrugged off the impact of the recession, and will grow by double-digit figures for the next two years.

The research firm however cautioned that, in the short term, the market is unlikely to grow at the same rate as before the crisis, adding that despite improving economic conditions the Russian retail market still falls short of expectations.

The study also looked at the growth of individual chains, and noted that the country’s top 20 retailers had a 11% market share in 2010. Of this, the three largest firms – X5 Retail Group, Tander, and Auchan – combined to take a 5% stake.

Source: www.freshplaza.com

Azbuka Vkusa: Expansion plans

Written by

Azbuka Vkusa – a premium-class retail chain, operating 44 supermarkets in Moscow and Moscow Region, is planning to open a supermarket in St. Petersburg. The company is also considering other directions: Kiev and Yekaterinburg. However, the final decision will be made in March 2012.

The chain is looking for retail premises from 800 to 1,500 sq m for premium-class food store, which are quite hard to find in the city center, as the competition among food retailers is growing and St. Petersburg can’t boast the same number of premium segment customers as Moscow, as per experts.

Source: www.retail.ru

The big port of St. Petersburg spent over 10 mln roubles on winter preparations

Written by

One nuclear and six diesel icebreakers will be working in the Finnish Gulf area this winter. The work of the Port will be coordinated by one situational room. Only electronic requests for ice channeling will be accepted.

To avoid the last year’s difficulties the Port of St. Petersburg has already freighted a nuclear icebreaker.

This winter all Russian ports in the Finnish Gulf (the big Port St. Petersburg, Primorsk, Ust-Luga, Vysotsk, Viborg) will be able to accept nuclear icebreakers. Last  year it was only the port of St. Petersburg which could accept these vessels.

Also this year all the requests for ice channeling will be accepted in electronic form.

Source: www.tks.ru

Spar to Launch New Format in Russia

Written by

International retailer Spar, operating in Russia since 2000 in the “Soft franchising” mode, is launching new format.

The first 5,000 sq m hypermarket under Spar brand will be opened in Chelyabinsk on 3 December 2011.

At the moment Spar stores all over the world have 4 main formats: convenience store Spar, supermarket Eurospar, hypermarket Interspar and Spar-Express shops, which can be found in airports, railway stations and gas stations. The Spar retail chain in Russia is totaling 265 stores, mainly supermarkets. Spar-Express, Spar-drugstore and Spar-Pizza are also present on the Russian market.

There are 8 independent licensees in Russia, who are entitled to open Spar stores and develop a chain of sub-licensees within their region.

Source: www.retail.ru

Organized retail market will emerge in Russia by 2015

Written by

Formation of organized retail market in Russia might be finished by 2015, so the Head of the Russian Union of independent retail chains. At the moment the market is dominated by hypermarkets, whose share is increasing.

In 2012 the share of hypermarkets will reach 15%. The share of hard discounters will remain at the level of 2011 and 2010. The neighborhood supermarkets will lose 5% of their share and occupy 34% of the market. Convenience stores will retain their 5%, which they have been occupying since 2010.

Experts also expect that international retail operators will build up their presence in Russia and add 1% to 9% that they have in 2011. Russian federal chains might also raise their share to 28%. Regional independent chains will keep their 34%.

Source: www.retail.ru

Russia to cut duty on apple and pear imports

Written by

RUSSIA will reduce import duties on apples and pears by nearly half after joining the World Trade Organization (WTO), and then cut them in half again by 2017. The import duty on pears will be reduced by half by 2015, according to Interfax, citing a document outlining Russia’s obligations upon accession to the WTO.

The current duty on apples imported from 1 January to 30 June is EUR0.10 pr kilo. Once Russia joins the WTO, which is expected to happen by the middle of 2012, the duty will drop to six euro cents/kg and by 2017 it is scheduled to decrease to three cents/kg (and to one and a half cents for apples imported from 1 April to 30 July). The duty on apple imports from 1 August to 31 December is currently EUR0.20/kg, depending on the type of product, and this will drop to six euro cents and then three euro cents per kilo by 2017.

Source: www.agra-net.com, www.interfax.com

Potential ban on Tajik fruit and vegetables will not cause deficit

Written by

Russian Phytosanitary Monitoring Service is seriously concerned by systematic damage of Russian and international phytosanitary requirements by fruit and vegetable exporters from Tajikistan. Rosselkhoznadzor applied to Phytosanitary Inspection of Tajikistan Ministry of Agriculture against such violations.

However, the share of Tajikistan in the structure of Russian fruit and vegetables import is not big enough to threaten the market. In 2010 it was only 1.8% and 2.1% of fruit and vegetables import respectively.

Russia’s total fruit import in 2010 reached USD 5.49 bln. Import from Tajikistan amounted to USD 99.02 mln. Vegetables import reached USD 2.28 bln, from Tajikistan – USD 48.8 mln.

Source: www.fruitnews.ru

Russia promised ‘to lower citrus import duties’

Written by

According to a document seen by Interfax, Russia could be set to lower the import duty on citrus products within a year of its accession to the WTO. Duties will also be lowered on mandarin oranges, lemons and limes, the document suggested.

Import duties on oranges and grapefruits, which currently stand at 5 per cent, €0.02 per kg, will be maintained until Russia joins the WTO. However, in 2013 the import duty on oranges will drop to 5 per cent but no lower than €0.017 per kg, while on grapefruits it will fall to 5 per cent but no lower than €0.015 per kg.

Between January and September this year, Russia’s citrus imports grew from 873,000 tonnes at US$730.7m to 1m tonnes at US$979.3m.

However, import duties on bananas and grapes will not change, the document said. It will be kept at its current level of 5%.

Source: www.fruitnet.com, www.freshplaza.com

French hypermarket chain Auchan opens in Tyumen

Written by

Widely known French retail chain became an anchor tenant with 20 000 sq.m in the largest shopping and entertaining center in Tyumen. This will be the first Auchan hypermarket to be opened in Tyumen in 2012.

The new shopping and entertaining center is situated in the growing residential district in the south of Tyumen. The total area of the building is 100 000 sq.m with a GLA of 75 000 sq.m. The open parking area will have 3 000 parking lots. The shopping center will also have DIY, sportswear and electronic goods, fashion gallery, entertainment zone with multi-screen theater, food-court and restaurants. It will be the largest shopping and entertaining center to be built in Tyumen. The grand opening is planned for the 4th quarter 2012.

Source: www.freshplaza.com

JFC Loses New Action Against Norwegian reefer operator

Written by

A U.K. court says Russia’s largest fruit importer JFC Group must disclose all its worldwide assets after the company failed to pay $16.5 million in damages to Norwegian shipowner Star Reefers.

In August the High Court in London awarded the refrigerated cargo ship operator damages and costs against charter party guarantor JFC, following the unlawful early redelivery of three ships and wrongful termination of charters by JFC’s chartering arm Kalistad.

After JFC failed to pay the damages or appeal the judgment was considered “final.”

With JFC’s ongoing failure to pay, a Commercial Court judge last week ordered the St. Petersburg-based company to disclose to Star Reefers all worldwide assets exceeding $25,000. It must also disclose any transactions between JFC and its associated companies in the last year in excess of $25,000.

Source: www.joc.com