Retail

Consumers demonstrate moderate activity before the New Year

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For the first time in the last few years consumers demonstrate moderate buying activity and growth rate reduction can be seen. This trend is more obvious in St. Petersburg than anywhere else.

This autumn Russia has seen consumption growth reduction. Russians have become more reasonable when planning personal budget and citizens of St. Petersburg have been the most moderate in their expenditures.

The first  evidence of the alarming trend appeared at the end of October and were most definite in November. In November expenditures grew by only 2% in comparison to October, whereas in the last two years the growth during this period was 5-6%.

Consumers started to buy only the required amount of goods and retail chains will have to face the new stage of competition: clients will be acquired by means of raising service quality.

Source: www.retail.ru

Russian retail market expected to exceed $800bn in 2013

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In 2010, the Russian retail market recovered after the economic slowdown observed during the previous year and increased by 12.9% to RUB 16.5tr ($543.5bn). However, PMR predicts that in the next few years the market is unlikely to re-establish the pace achieved before the crisis.

PMR expects that there will be double-figure growth in the industry from 2011 onwards. However, in the short term the market is unlikely to witness the rate achieved before the crisis. Despite the improving economic conditions and relatively positive forecasts for the next few years, the situation on the Russian retail market still falls short of expectations.

The X5 Retail Group, which operates the Pyaterochka, Perekryostok and Karusel grocery stores, remains the leading retailer in terms of revenues in Russia. In addition to the double-figure year-on-year increase in total sales, there was a 7% increase in the company’s like-for-like sales in 2010.The Tander Group, a grocery retailer, occupies second place among the largest retailers, and is followed by the Auchan Group.

In 2010 the top 20 retailers accounted for about 11% of the country’s total retail sales value. The three largest players (the X5 Retail Group, Tander and the Auchan Group) controlled almost 5% of the market.

Source: www.freshplaza.com

Imported fruits and vegetables still preferred by Russian retailers

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Notwithstanding solid overproduction of vegetables in Russia, retailers still prefer to purchase imported produce. This information is regularly reported to Fruit-Inform by Russian producers, who try to come to an agreement with supermarkets about supply of their produce.

The quality of local fruits and vegetables leaves much to be desired. Even taking into account its lower prices, domestic produce often cannot compete with graded, washed and packed imported fruits and vegetables.

Source: www.freshplaza.com

Russia: Strong growth expected in local retail market

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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

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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

Spar to Launch New Format in Russia

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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

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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

French hypermarket chain Auchan opens in Tyumen

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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

Moscow Retail Overview

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Mosgorstat (Moscow City Statistics Service) has published the data regarding Q1, Q2 and Q3 of  2011 compared with the same period in 2010.

The retail trade volume in Q1-Q3 2011 amounted to RUB 2,356.8 bln, 5.8% more than in 2010. The food items sales volume, including beverages and tobacco, grew by 4.2%. Food-items, beverages and tobacco accounted for 51% of the retail turnover. Retailers’ turnover grew by 7.2% y-o-y.

Source: www.retail.ru

Azbuka Vkusa to expand retail chain up to 50 stores

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Azbuka Vkusa is planning to expand the retail chain of premium-class supermarkets up to 50 stores till April  2012. In the financial year 2011 the company is planning to open 10 new stores, 3 of them have already been put into operation.  At the moment the chain includes 43 stores.

The opening of one store requires about USD 4 mln investment. In 2010 the company’s net profit grew fourfold to RUB 978.8 mln from RUB 237.9 mln in 2009.

Source: www.retail.ru