Retail

Russia is the first in Europe to introduce new retail departments

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The number of new shopping centers in Russia in the year 2011 is setting all the records. Lots of shops, including large trading networks, that occupy new modern buildings, are showing steady growth of sales.

According to the information of the American real-estate agency Cushman & Wakefield Inc., only in the first half of the year nine new shopping centers with the total area of 400 thousand square meters were opened. This is the highest number in Europe. During the whole last year there were built only 488 thousand square meters.

It is expected that by the year 2012 approximately 3 million square meters of salesrooms will be put in commission.

Nowadays there are 80.5 square meters of sales area for 1000 habitants in Russia. This is 30% less than in 27 countries of the European Union.

The rent in Russian shopping centers varies between 750 euro and 2200 euro for 1 square meter.

Source: www.foodnewsweek.ru

Retail will grow 5.5% a year

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According to the forecast of the social-economic development of the Russian Federation for the year 2012 and the planning period 2013-2014, prepared by the Ministry of Economic Development and Trade, the growth rate of the retail turnover in the years 2012-2014 won’t exceed 5.5% a year.

The growth dynamics of non-foods will advance the growth dynamics of food products. In comparison with the year 2010 the food products turnover will grow 8.4%, whereas the nonfoods turnover will grow 38.2% by the year 2014.

In the food products structure the sales of more expensive products will grow, such as meat and poultry, fish, cheeses, fruit, vegetables and berries. At the same time sales of bread and bakery products will decline.

Source: www.fruitnews.ru

“Dixy’s” new marketing strategy is yielding favorable results

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The “Dixy” Goup, that belongs to the Igor Kesaev’s “Mercury” Group, has managed to raise the net profit 4.4 times until 554 million rubles during the first half of the year. The company’s revenues have increased 22%, until 37.4 milliard dollars. The gross margin of the “Dixy” Group has grown until 25.1% (contra 23.7 % during the first half of the year 2010), and the EBITDA profitability—until 6.6% (5.8%). On Tuesday “Dixy’s” share quotation on the MICEX has grown about 5%, almost 310 rubles for the paper.

According to the Alfa-bank analysts, the “Dixy’s” investments in logistics and new marketing initiatives are yielding favorable results.

In summer 2010 Danny Perekalsky has become the “Dixy’s” marketing director, and under his command the company has changed its marketing strategy. The quantity of fruit and vegetables in the assortment has grown a lot. Moreover, “Dixy” has changed the salesroom planning, the display of goods, and created a greater variety of products of its own merchandise marks. The retailer is planning to spend about 500 million rubles on renovations during 3 years.

Source: www.fruitnews.ru

X5 to open more than 500 stores in 2011

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X5 Retail Group N.V., one of Russia’s largest retailers is planning to open about 540 new stores in 2011. Within the development strategy the company will focus on towns with more than 10,000 people. The majority of new stores will be opened organically, but the development package will also include acquisition deals. X5 is interested in all the chains operating in the focus regions and they keep in touch regarding potential takeovers.

Source: www.retail.ru

Sedmoy Kontinent reported sales growth in HY1 2011

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Grocery chain Sedmoy Kontinent (Seventh Continent) has reported strong growth in profit and sales for the first half of the year, helped by continued expansion.
For the January-June period, net profit more than tripled to 2.03 bn roubles (€48.5m), from 668.9 m roubles last year, while revenue jumped up 23.4% to 24.19bn roubles (€578m).

The company attributed the growth in sales to the addition of new outlets as well as “the improving welfare of the country’s population, and the Moscow administration’s policy for developing civilized food trade instead of product markets”. Profits were helped by lower commodity costs and a better pricing policy, as well as savings on labour expenses.

Source: www.freshplaza.com

Russian fast-food market is growing by 25-30% annually.

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The volume of the fast-food market occupies a relatively modest part of the total public catering turnover. Despite this fact its share is constantly growing. In 2010 the fast-food market almost reached 100 bn roubles and it accounted for 12.8% of the public catering market.

As per new marketing research “Russian public catering market. The current situation and forecast”, carried out by Intesco Research Group, the share of the Moscow fast-food market in 2010 amounted to 40% of the whole Russian market, which is much higher than Moscow’s share in the total public catering turnover. The fast-food market in Moscow with dozens of new chains is very dynamic and adds 25-30% annually.

Source: www.retail.ru

FMCG retailers demonstrate steady growth

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Development of the hypermarket format

In June 2011 Russia’s Top-90 FMCG retailers added 4 objects with total area increase by 9.200 sq m. In HY1 2011 the number of sales objects grew by 15, the total area  – by 32.800 sq m. In June 2011 2 new Magnit hypermarkets were opened in Nizhniy Novogorod and Chelyabinsk Regions, hypermarket “Alleya” in Krasnoyarsk Region and Prisma in St. Petersburg. As of July 1st 2011 the total number of Top-90 retailers’ hypermarkets is 484 with total area 2,958,000.2 sq m.

Development of the supermarket format

In HY1 2011 the number of Top-90 FMCG retail supermarkets rose by 73, their total area grew by 55,300 sq m. As of  July 1st 2011 there are 1,647 Top-90 FMCG retail supermarkets in Russia with the total sales area more than 1,467,000.4 sq m.

Development of the discounter format

In HY1 2011 Russia’s Top-90 FMCG retailers added 813 objects. Discounters’ sales area grew in HY1 2011 by 284,000.7 sq m. As of July 1st 2011 the total number of discounters in Russia is 9,384 with total sales area exceeding 3,300,000.9 sq m.

Development of the convenience store format

In HY1 2011 the number of convenience stores of Russia’s Top-90 FMCG retailers grew by 88 objects. Their sales area grew by 16,300 sq m. As of June 1st the total number of convenience stores in Russia is about 1,776 with total area exceeding 563,200 sq m.

Source: www.retail.ru

15 Superbrands entered the Russian market since the beginning of 2011

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International expansion of the world’s leading retail and food retail brands has been quite active in the HY1 2011. During the last 5 years the Russian market remains one of the most attractive for expansion for the largest American and European brands.

Since the beginning of 2011 3 large public catering chains entered the Russian market: the famous German fish fast-food chain Nordsee, one of America’s fast-food leaders Wendy’s and the famous Pinkberry cafes with their delicious frozen yoghurt and fruit smoothies.

Source: www.retail.ru

X5 Retail Group introduces new convenience store concept

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The new outlets have a smaller sales area, ranging from 70 to 200 square metres and the product range includes ready meals, convenience food and fresh bakery products. X5 plans to introduce a coffee bar and Wi-Fi in the future. The retailer currently operates four company-owned stores in Moscow but plans to expand the network through franchising.

Source: en.retail.ru

Food Retail Chains Accounted for 27.2% of the Total Retail Turnover in 2010

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In 2010 food retail chains started to recover from the economic recession. The revenues grew faster than in 2009, which is partly due to the low base effect. According to RBC.research, food retail chains, selling FMCG, accounted for 27.2% of the total retail turnover and added 0.7 perecentage points in comparison to 2009. Federal and international retail chains were developing quite successfully and increased the number of new stores by 20-30%.

Though the development of food retail chains in 2010 could be more dynamic, as it was put on the brakes by slow construction of commercial real estate and the shortage of suitable retail premises. Lots of new stores were opened behind schedule.

Source: www.retail.ru