March 2011 Russian retail turnover grew by 4.8% y-o-y and reached RUB 1.458bn. Food items, drinks and tobacco sales turnover was RUB 713.4bn, which is 1% more than a year ago. Q1 2011 food items retail turnover grew by 1.2% to RUB 2.04bn, non-food items turnover made RUB 2.1bn, 8.3% more than 2010. March 2011 food items retail turnover accounted for 48.9% of the total retail turnover, the share of the non-food items was 51.1%.
Source: www.retail.ru
The premium class supermarket chain “Azbuka Vkusa” is planning to launch more than 7 new stores in Moscow and Moscow region. The retailer is also considering expansion opportunities in St. Petersburg, Yekaterinburg and Kiev.
Since 2008 the company has almost doubled the number of stores: it has increased from 24 to 40, which is quite a good growth rate for the “premium” segment.
Since the beginning of the year the chain has already opened 3 new stores, and operates the total number of 40 outlets. Opening of one store requires a USD 3m investment and USD 4m including the whole range of goods.
Source: www.retailer.ru
The consolidation process, which has already started in the Russian retail market, will be over in 5-7 years. The experts predict that 4-5 largest retail market players will occupy up to 90% of the market. At the moment all retail chains hold a 30% market share, less than 15% belongs to 5 major players. In 5-7 years retail will occupy about 80-90% of the whole market. The rest 10-20% will belong to collective farm markets and super-specialty shops (cheese or butcher’s shops), which will offer goods which can’t be found in a supermarket.
Source: www.foodretail.ru
The Moscow Administration obliged retailers to switch over to the new type of kiosks by the end of the year. The Trade and Service Department spokesman, Nikita Kuznetsov, reported that first of all the new pavilions will be installed in the city center. There will be less than 1,500 tents left in the central district of Moscow.
Source: www.retail.ru
X5 Retail Group N.V., Russia’s largest retailer in terms of revenue, announced its retail sales and operational performance for the first quater of 2011. Consolidated net retail sales increased 48% y-o-n in RUB terms to 111.989m and in USD terms 51% to 3.826m. 76 stores added on net basis in Q1 2011, including 80 soft discounters, 2 supermarkets, 2 convenience stores and closures of 8 Kopeyka stores. Net addition of selling space totaled 16,000 sq.m.
Andrei Gusev, X5 Retail Group CEO, commented: “Sales grew 48% in RUB terms in the first quarter or 29% excluding Kopeyka, led by a strong recovery in supermarket LFL sales growth and sustained performance of discounters”.
Source: www.retailer.ru, www.investegate.co.uk
In 2010, Russian retail market recovered after the economic slowdown observed in the previous year and increased by 12.6% to RUB 16.4tr ($541bn). However, the latest PMR report „Retail in Russia 2011 – Regional focus. Market analysis and development forecasts for 2011-2013” shows that particular regional retail markets still reveal differences in their development due to their unique nature and local characteristics.
Being the smallest and the most populous region of Russia, the Central Federal District remains the largest retail market in the country, accounting for 34% of country sales in 2010. The majority of the largest retailers in Russia originate from Moscow, which gives the Central Federal District the special status of the region accommodating the leading domestic operators as well as foreign retailers establishing their presence in Russia.
In dollars, retail market in Russia gained 80bn in 2010, of which 60bn excluding an effect of exchange rates. The majority, i.e. more than one-third, was worked out in the Central Federal District. The Southern and Volga Federal Districts contributed to the Russian growth evenly. Owing to these three districts, the Russian retail market gained nearly $57bn in 2010.
The expectations of local retail operators regarding future development after the financial crisis vary considerably depending on the retail sector. Thus, in grocery retailing the financial crisis has stimulated market consolidation. The segment witnessed many takeovers across the country. Generally, according to PMR report, the retailers remain optimistic regarding the future development of the market.
Source: www.freshplaza.com
X5’s largest shareholder, Alfa Group, is reportedly considering a merger with a large market player – namely Metro Group or Turkish Migros – in the next two years, Kommersant reported.
New CEO Andrei Gusev, who was previously head of X5’s M&A department, said that the retailer was not interested in an acquisition in its domestic market, a strategy which X5 has followed over the last five years.
With new management in place, X5 is changing its strategy. It plans to grow organically, partly because there is lack of acquisition targets in the Russian retail scene, but also because the retailer has a lot of debt.
Source: www.retailer.ru, www.foodnewsweek.ru
Magnit, which has the largest number of retail outlets in Russia, intends to invest USD1.5 billion in opening 800 convenience stores, about 200 drugstores under the Magnit Cosmetic brand and up to 55 hypermarkets in 2011, the retailer said. In contrast to this, Auchan has announced it will be opening fewer stores than planned in 2011, as it is hard to find suitable land.
Last year the retailer opened 800 supermarkets and neighbourhood stores and 27 hypermarkets, whereas its rival X5 has expanded its store network by around 480 stores.
Source: www.retail.ru
The Finnish retail group Kesko, which is already present on the Russian market with a chain of DIY hypermarkets K-Rauta, is planning ot open a grocery chain. 2012-2013 the company plans to open four supermarkets K-citymarket: two in St. Petersburg or Leningrad region and two in Moscow region. At the same time Kesko is considering buying a local grocery chain. Talks with “Lenta” owners have already taken place at the beginning of the year.
The group Kesko owns about 2,000 stores in Scandinavia, the Baltic states, Russia and Belarus. 2010 the net sales amounted to €8.77bn. In Russia the company operates 12 DIY hypermarkets K-Rauta (in St. Petersburg and the Moscow region), the net sales 2010 reached €204m.
Source: www.foodnewsweek.ru
According to the marketing research “Russian retail market 2004 – 2010”, carried through by “AMIKO”, the retail turnover structure is very diverse in different regions.
The biggest retail share – about 17% – belongs to Moscow. Only 12 federal subjects share about 54% of the retail turnover. These are Moscow and Moscow Region (6%), St. Petersburg (4%), Sverdlovskaya Region (4%), Krasnodar Territory (4%), Tyumen Region (4%), Republic of Bashkortostan (3%), Rostov Region (3%), Republic of Tatarstan (3%), Samara Region (3%), Chelyabinsk Region (2%) and Nizhni Novgorod Region (2%).
All the rest regions account for about 45% of the retail turnover. At the same time the largest federal subjects (Moscow and St. Petersburg) lose about 1.5-2% of their share every year, as they have a lower pace of retail turnover growth.
Source: www.foodnewsweek.ru