The large Russian food retailer Dixy reported the Q1 net profit growth by 27% up to 164.1m rubles. Net retail sales increased by 21% to 181.1bn rubles; EBITDA grew by 28% to 1bn rubles. The like-for-like sales soared by 7.6%. Dixy is preparing a RUB 25.6bn acquisition deal with Victoria retail chain. The control packet of Dixy shares (63.7%) belongs to the multi-field holding company Merkuriy, owned by Igor Kesayev.
Source: www.retailer.ru
Following the results of the financial year 2010 Russian retail turnover grew by 12.6% and exceeded RUB 16,435bn. In February 2011 the mass of commodities reached 103.3% y-o-y. The balance of food and non-food items in the retail structure is almost equal. By the end of 2010 the share of food items was about 50%. The average annual increase of retail turnover in 2011-2012 may reach 2.9%. In the next three years food sales may grow by 8.7%.
Source: www.foodnewsweek.ru
In March 2011 Russian retail turnover growth was 4.8%, in April 2011 it reached 5.6%. In Q1 2011 retail turnover grew by 5% y-o-y to RUB 5.648 trillion. In April 86% of retail turnover was generated by trade companies and entrepreneurs, operating beyond the market. The share of retail markets and fairs was 11.4% (in April 2010 – 87.8% and 12.2% respectively). Food items, including drinks and tobacco, had a 48.5% share in the retail turnover; non-food items occupied 51.5% (in April 2010 48.8% and 51.2% respectively).
Source: www.retail.ru
In 2010 the consolidated net profit of the large Russian retail chain Victoria grew 2,4 times y-o-y and reached RUB 831.14m. Net profit in 2009 was RUB 350.93m. Net retail sales in 2010 grew by 12.2% up to RUB 34bn. Victoria’s total profit gained 14.7% and reached RUB 11bn, operational profit grew by 41.5% to RUB 1.74bn. EBITDA almost doubled from RUB 702.8m in 2009 to RUB 1.4bn in 2010.
Source: www.retail.ru
In March 2011 Russia’s 90 largest retail chains added 49 shops to the total number, which has grown by 111 since the beginning of the year. Discounter format is still leading in the market, but hypermarkets are also gathering pace. In Q1 2011 Magnit opened 222 shops, among which 211 discounters and 11 hypermarkets. Enhancement of competition within the branch will contribute to further consolidation, and in the 2nd HY 2011there will be more new shops opened.
At the same time X5 Retail Group is less ambitious and only planning to open 500 discounters, up to 25 supermarkets and 10 hypermarkets. The company is also working on new formats. During January – March X5 opened 80 new discounters and 2 supermarkets.
Source: www.retail.ru
Foreign retail chains in Russia haven’t succeeded in replacing domestic retailers yet. According to INFOLine agency, in 2010 the share of national retail chains was as large as 77.5%. Western retailers occupied the DIY segment, where Castorama, OBI, Leroy Merlin, K-Rauta and others control almost 73% of the market. International food retail chains couldn’t raise their share in the Russian market. Among other reasons experts mention Carrefour’s and Walmart’s misadventures in Russia. Domestic retail survived due to the rapid growth of the largest food retail operators like Magnit and X5.
Source: www.retail.ru
Within the Cross-industry Council of Experts retailers and suppliers submitted their amendments to the Tax Code and the federal law “On the Principles of State Regulation of Trading Activity in the Russian Federation”, which came into force on 1 February 2010.
The consolidated list of amendments will be first sent to the corresponding ministries and then to the State Duma. The market players suggest that calculation of transportation expenses should be changed and the allowed market share for retail chains in small towns should be increased from 25% to 35%. They also want to obtain permit to charge off thefts.
Source: www.foodnewsweek.ru
According to experts of Cushman & Wakefield the Moscovites spend EUR 7.619 a year on retail purchases. Real incomes in Moscow are the highest in Russia: ca. USD 1.532 in 2010 vs. Russia’s average USD 620. 68% of their income the Moscovites spend on buying goods and services, which is the highest rate in Europe, according to Jones Lang LaSalle. Rosstat reports that the average Russian citizen earns USD 8.330 and spends USD 4.941 a year. The Londoners spend ca. EUR 5.760 and the Germans EUR 5.600 a year.
Source: www.retail.ru
According to experts’ opinion, their index will be restored due to the expansion of sales areas and increase of net sales. In Q1 2011 Magnit opened 134 stores, among which 126 convenience stores, 6 hypermarkets and 2 drugstores. The company’s sales area grew by 36%, from 1,092.6 sq.m in Q1 2010 to 1,485.72 sq.m in Q1 2011. The total number of the chain’s stores is 4,189. Today the retailer’s shares top the favorites list. In the middle of trading the company’s quotations grow by 4.577% up to RUB 3,879.8, whereas the MICEX index added 0.744% to 1,690.62 points.
Source: www.retailer.ru
Aggressive expansion policy of the largest retailers has reached its aim: 5 largest chains account for 70% of retail areas augmentation in 2010.
The INFOLine analytical agency reports, that 2010 Russia’s ninety largest retail chains added ca. 1m sq.m of new sales areas, of which 55% fell on two largest market players – Magnit and X5 Retail Group. 2009 they had a 48.2% share in the total volume of newly opened sales areas. Top five food retailers, including Auchan, Metro Cash & Carry and Okey, accounted for 72.3% of the areas augmentation). The rest 27.7% were shared among 47 other retail chains.
Source: www.fruitnews.ru