Retail

Auchan to Treble the Number of Hypermarkets in Russia

Written by

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

Magnit sees 58.7% Revenue Growth in H1 2011

Written by

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

Russian Food Retail to Grow by 22%

Written by

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

The Price of Street Kiosks to Double

Written by

The new approved version of street kiosk will cost Rub 350,000. New street tents will have a brand new style: laconic, beige colour, without any crude signs. However, they won’t be all the same. Designers from the Moscow Architectural Committee developed various styles: “Classical”, “Modern” and “Free style”. Entrepreneurs can order tents from different manufacturers, as there is no monopoly for them. Manufacturers are obliged to charge the set price and follow the standards, developed by the Moscow Architectural Committee.

The mayor of Moscow Sergey Sobyanin is determined to get rid of old kiosks and set the limit for the number of new ones of 10,000. In 2010 there were 26,000, almost threefold more.

Source: www.retail.ru

Russian Retail Turnover Growth Fell to 5.5% in May

Written by

According to Rosstat (Russian Federal Statistics service) in May 2011 Russian retail trade growth fell from 5.6% in April to 5.5%. In Rub terms the growth rate made 1trln 525.4bln. In May the turnover grew by 2.4%. The share of food items, including drinks and tobacco, amounted to 48.3% (48.9% in May 2010), non-food items occupied 51.7% of the total retail turnover (51.1% in May 2010). Trade companies and individual entrepreneurs generated 88.8% of retail turnover. The share of retail markets and fairs was 11.2% (in May 2010 87.9% and 12.1% respectively).

During the first five months of 2011 retail turnover grew by 5.2% y-o-y and reached Rub 7trln 182.4bln.

Source: www.retail.ru

Finnish Sok Retail Int. Oy to Open 4 New Supermarkets in St. Petersburg

Written by

Sok Retail Int. Oy is part of the Finnish S-Group, which operates retail chains Prisma, Sale, SMarket and Sokos, Holiday Club, Radisson SAS hotels. To date the company runs 5 chain stores  Prisma in St. Petersburg and Leningrad Region. Sok Retail Int. Oy is planning to invest Eur 100mln in 4 new supermarkets in St. Petersburg, housed by Adamant Holding Company. As per experts’ estimates, Sok Retail will acquire up to 50,000 sq m of sales area. Prices in Prisma are higher than in local supermarkets, but consumers are attracted by the range of Finnish products, which normally can be purchased only in Finland.

Source: www.retail.ru

Russian Companies Form RFID Joint Venture

Written by

Russian nanotechnology company Rusnano, along with Sitronics, a Russian electronics company, and X5 Retail Group, Russia’s largest retailer, have joined in an agreement to bring radio frequency identification (RFID) technologies to Russia’s retail industry.

According to an announcement of the agreement, the new joint venture will not only introduce the technology, but will also develop standards and practices for the commercialization of the technology in Russia. The goal of the joint venture is to open Russa’s first “model grocery store for the future” by 2013 based on X5’s retail platform to demonstrate the viability and RFID.

RFID tags are commonly used by many retail companies around the world such as The Home Depot and Walmart to help with inventory and logistics.

The initial budget for the project is 350 million RUB (US$12.5 million) shared equally by the three participants over two years.

Source: www.freshplaza.com

Magnit’s Net Sales Grew by 47.3% in May

Written by

In May 2011 Magnit (RTS: MGNT) reported net retail sales growth by 47.3% y-o-y. Net retail sales reached RUB 27.3 bln. During HY1 2011 net retail sales increased by 52% and reached RUB 129 bln. The observed temporary slowdown in growth is due to the fact that many shops are shut down for renovation.

Significant sales growth is stimulated by opening of the new shops and sales area expansion. There were 86 new shops opened in May, including 2 hypermarkets. In the HY1 2011 the total number of new shops reached 308, among which 13 hypermarkets.

The fast-growing sales areas increased by 39.6% in May and reached 1.571 mln sq m. Magnit’s area growth pace  exceeds this figure by X5 Retail Group 1.5-fold.

Source: www.retail.ru

Leaders Will Be Back

Written by

The Head of the Association of retail trade companies and ex-chairman of X5 Retail Group N.V. Lev Khassis believes that world retail market leaders will probably be back on the Russian market in the coming years. 2011-2013 Russia can expect the comeback of one of world’s global retail operators: Walmart, Carrefour, Tesco. Khassis thinks that one of them will definitely establish itself on the Russian market through takeover of the local player. Russian retail market gradually becomes one of the largest in Europe and can’t be ignored by global players.

Source: www.retail.ru

Carrefour Moves to Georgia

Written by

The French retail chain Carrefour is #2 in the world after Wal-Mart in terms of turnover. After the unsuccessful attempt to establish itself in the Russian market Carrefour is now planning to open its first hypermarket in Georgia. Till the end of 2011 Carrefour will become an anchor tenant in the Uptown Tbilisi shopping center and will occupy 13,000 sqm. According to RBC experts Georgia can boast interesting development perspectives. The local market is represented by several retail chains. The largest of them – Populi – operates 45 shops. Georgian economy with its annual 6-7% growth is quite attractive for investor despite the political instability.

Source:  www.promofoods.ru