Retail

Russian retail may face another merger soon

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The German Metro Group has put on hold negotiations on sale of Real hypermarkets chain, but may resume them after resignation of its Head Eckhard Cordes. Among the companies interested in acquisition of Metro active assets, including 16 stores in Russia, is the French Auchan, running 46 hypermarkets in Russia.

As per Financial Times Deutschland (FTD) Metro Group has put on hold sale of the Real chain (424 stores in Germany, Poland, Russia etc.). Metro confirmed that at the moment there are no active negotiations.ail

Source: www.retail.ru

Auchan to open 5 new hypermarkets in 2012

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The French retailer Auchan, Russia’s 3rd largest food retail operator in terms of sales volume, is planning to open 5 new hypermarkets in 2012. As per Interfax news agency, they will appear in Ulyanovsk, Volgograd, Ryazan, Tyumen and Nizhniy Novgorod. The total estimated investment volume in the chain development amounts to 4.5 billion roubles.

In October 2011 Auchan opened new stores in Kazan and Ufa. By the end of 2011 the company is planning to open new hypermarkets in Novosibirsk, Samara and Chelyabinsk. As of Q3 2011 the company is running 30 Auchan hypermarkets and 14 Auchan City stores. The company is also developing a chain of supermarkets Atak, which now includes 50 stores.

Source: www.retail.ru

Retail chains in Russia and Ukraine waiting for offers

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The 2011 situation in the Russian and Ukrainian market showed the importance of direct contacts between international suppliers and retail chains from the Eastern European. Retail chains in Russia and Ukraine are the largest purchasers of fruits, vegetables and potatoes, therefore Fruit-Inform decided to include the First Ukrainian-Russian Trade Forum in the program of the 8th International Conference “Fruits & Vegetables of Ukraine – 2011. New Exporter”.

The conference takes place in conjunction with Fresh Produce Ukraine 2011 (November 30 – December 2, 2011), the international fair for fruit and vegetable production, processing, storage and handling technologies of Ukraine and CIS with about 10,000 horticultural business professionals from Ukraine, Russia, Poland, Moldova and other countries.

Participation has already been confirmed by X5 Retail Group (Perekrestok), Viktoriya (Viktoriya Kvartal, Dyoshevo, Semeynaya Kopilka and Viktoriya retail chains), Tander (Magnit), Auchan, Metro, ATB-Market, Kontinent, Karavan, Klass supermarket chain, Ukrainskiy Retail (Brusnichka freshmarkets).

Source: www.freshplaza.com

Azbuka Vkusa launches its “green” program

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Azbuka Vkusa has launched a massive eco-program which implies total switch to biodegradable shopping bags and packing. From now on all purchases are put into biodegradable bags which remain free of charge for customers.

Switch to eco-friendly bags is the first step of the new corporate social responsibility program, carried out by the retailer.

As further steps Azbuka Vkusa is planning to broaden the line of craft bags of different size and eco-friendly jute bags. The company is considering the option of total refusal of plastic packaging.

Source: www.retail.ru

Moody’s: inflation in Russia may freeze retailers’ incomes

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As per Moody’s international rating agency, consumer price index growth in Russia and slow increase of the real income of the population may restrain sales growth of Russian retailers in the nearest future. Like it was during the recession of 2009 retailers with larger share of discounters in their retail chains will demonstrate more stable results than retailers operating in other formats.

Moody’s is also expecting the investment volumes of international companies in Russia to remain low due to the poor investment climate in the country. Despite the fact that such large retail companies as Auchan, Suomen Osuuskauppojen Keskuskunta and Metro AG are represented on the Russian market, others (like Carrefour SA) have left the country.

Source: www.retail.ru

X5 Retail Group is suffering from the unstable economy

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X5 Retail Group has suffered more than any other retailer from the customer attrition,which was registered in Q3 2011. Moreover the company is expecting further lowering of LFL sales in Q4 2011. X5 Retail Group has lowered the forecast of growth in revenues for 2011: instead of 40% the revenues are expected to grow by 35%. After the company had announced this news its capitalization dropped by 15%.

X5 Retail Group blames the Russians’ purchasing power which has decreased due to the unstable economic situation in Russia and in the world – a trend which is observed on the Russian food retail market.

Source: www.retailer.ru

Sales on the rise at X5 Group

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Despite a strong third-quarter result, the Russian retailer cuts it’s full-year sales forecast, Russian retail leader X5 has announced growth in its net sales for the third quarter of the year, with consolidated net retail sales increasing 32 per cent year-on-year to R105bn (€2.4bn).

Organic sales increased 18 per cent on the same quarter of 2010, while like-for-like sales grew 4 per cent.

During the three-month period, X5 opened 102 new stores in the country, including 114 soft discounters, six supermarkets, two hypermarkets and 11 convenience outlets, while it closed 31 Kopeyka units.

For the first nine months of the year, consolidated net retail sales jumped 40 per cent on the same period a year before to R3.30bn (€6.9bn).

Despite these positive numbers, however, X5 revealed that it was cutting its full-year sales forecast from 40 per cent to 35 per cent, due to the uncertain economic environment and the rebranding of its Kopeyka stores.

“Russian consumers have cut back on spending amid unstable economic conditions in Russia and worldwide, a trend that has been observed on the Russian food retail market,” the group noted.

Source: www.fruitnet.com

The Groupe Auchan is planning to invest $150-200 million in the development of the hypermarkets Auchan in Russia

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According to the general director of “Auchan Russia” Jean-Pierre Germen, The Groupe Auchan” is planning to invest $150-200 million in the development of the hypermarkets “Auchan” in Russia. He has also said that “Auchan” is planning to open from 5 to 10 shops a year.

By the end of the year three more shops will be opened in Russia. The Auchan’s investition in the hypermarket in Kazan was more than 500 million rubles. The payback period will depend on the consumer’s activity.

The general director said that they are going to pay more attention to the work with domestic suppliers so that in the future they would become national.

Source: www.lol.org.ua

«O’Key» is planning to build 2 hypermarkets in Krasnodar Territory

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The company “O’Key Group” is planning to build 2 hypermarkets in the Krasnodar territory by the year 2015. The total cost will be 1.3 milliard rubles.

In particular, 1 milliard rubles will be invested to the building of the hypermarket in Novorossijsk, 320 million rubles—in Sochi. The building will be carried out at the company’s cost. In the year 2011 the placement of the “O’Key Group” hypermarket in the shopping center “More Mall” in Sochi will start. It will start working in the 2nd quarter of the year 2012. In the year 2013 the building of the hypermarket in Novorossijsk will start. The company is also planning to build 5 hypermarkets “O’Key express” with the total cost of 600 million rubles.

Source: www.lol.org.ua