Russian Retail Market: the Number of Hypermarkets Grew by 50% a Year

2004 there were recorded 61 hypermarkets in Russia, in 2007 there were already 214. 2008 the growth declined by 27%, in 2009 there were only 2 new hypermarkets opened. 2010 the growth accelerated again and the number of hypermarkets grew by 16% and reached 318 (not including cash&carry format stores).

Source: www.product.ru

Russian Retail Companies Become Importers to Reduce Price Growth

Fruit import can hardly be considered as a high-yield business: the average profitability is about 5% due to the intense competition and the companies’ liability to keep the price level low. Direct import allows to improve the quality of the product range by reducing the supply chain and to make the retail prices more competitive.

Among the largest Russian retailers it is only X5 Retail Group which isn’t planning to become an independent importer. Russian retail chain Dixy has started its own import of fruit and vegetables which account for 12% of the total turnover. At the moment the chain imports 50 items of this category – about a half of the fruit and vegetables range.

Metro Group Buying provides Metro Cash & Carry with 80% of the imported produce. The company’s representative says that the share of the imported goods will grow. The French hypermarket chain Auchan imports fruit and vegetables from Spain and Portugal.

Source: www.foodretail.ru

Fruit import can hardly be considered as a high-yield business: the average profitability is about 5% due to the intense competition and the companies’ liability to keep the price level low. Direct import allows to improve the quality of the product range by reducing the supply chain and to make the retail prices more competitive.

Among the largest Russian retailers it is only X5 Retail Group which isn’t planning to become an independent importer. Russian retail chain Dixy has started its own import of fruit and vegetables which account for 12% of the total turnover. At the moment the chain imports 50 items of this category – about a half of the fruit and vegetables range. Metro Group Buying provides Metro Cash & Carry with 80% of the imported produce. The company’s representative says that the share of the imported goods will grow. The French hypermarket chain Auchan imports fruit and vegetables from Spain and Portugal.

Inflation in Russia depends more on food prices

Economists believe that 2011 inflation in Russia will become even more dependent on food prices. After Rosstat (Russia’s State Statistics Office) studied Russian expenditure patterns, it revised the inflation calculation basis. The share of food in the expenditures structure has risen from 37,97% to 38,5%. The increase is basically due to a dramatic price growth on cereals, fruit and vegetables, which took place at the end of 2010.

Source: http://top.rbc.ru/economics/

Fruit and Vegetables Inflation Rate in Russia Reached 54%

Fruit and vegetable index of Fruit-Inform shows that cost of fruit and vegetables for the Russian consumer in mid November was on average 54% higher than in the same period of last year.
The largest increase of prices was registered for traditional vegetables and potatoes. Their main set was up in price by 141% comparatively with the last year! Glass-grown vegetables were on average 26% higher in price than a year before, fruits – only by 5%. Fruit and vegetables keep on increasing in cost in Russia. Within the last week, prices for fruit and vegetable produce grew on average by 5%. All main categories of fruit and vegetables were increasing in price.

Source: www.lol.org.ua

Russian Advertisement Market Recovering

According to the Association of Russian Communication Agencies, the cumulative advertisement turnover in Russia has gained 14% during January – September 2010 and reached 158 – 159 billion roubles (incl. VAT). This is more than during the respective period in 2007 (152 – 153 billion roubles), but the advertisement market is still far from the 2008 record (186 – 187 billion roubles). During 2010 the market has been recovering. In particular, TV gained 11%, print press – 7%, radio – 8%. The volume of outdoor advertising increased by 18%. However, Internet remains the growth leader with increase of 37%, same pace as in 2009.

Source: www.retailer.ru

Russia: Potato shortage to stem from drought

Following a pessimistic forecast of the drought impact on potato crops, Russia will have to import over 4 million tones of potato in order to meet the consumer demand. The shortage amounts to 7 million tones assuming the general domestic demand of 29 million tones.

Kazakhstan, a major potato exporter to Russia has also been severely hit by the drought and heat waves. Belarus plans to gather a good harvest and increase its exports to Russia (up to 250,000 tones of potatoes). However, Belarus cannot cover Russia’s total demand of potatoes. Therefore, Russia will have to import from other CIS countries, as well from Poland, France, Germany, the Netherlands, India, China, Canada and the U.S.

Source: www.rt.com

Russia restricts Moldovan imports

Russia has reportedly imposed restrictions on the number of companies from Moldova that are allowed to export fruit and vegetables to the country and reduced the amount of these companies from 136 to 36. Moldova, which is Europe’s poorest country, currently exports apples and grapes, among other products to neighbor countries.

Speculation in the media has linked Russia’s move to Moldova’s parliamentary elections in November, claiming Moscow may be attempting to exert greater influence over the country and dissuade it from any attempts to move closer to the European Union.

Source: www.fruitnet.com

New Regulations of Russian Retail

The new Federal law “On the Principles of State Regulation of Trading Activity in the Russian Federation” came into force on 1 February 2010.  However, was postponed till August 1 in order to allow retail chains and suppliers reissue contracts. The Law is supposed to considerably change the rules applicable to trade activities.  The Law restricts the markup of a retail chain to 10% of the price of acquired food products.  This markup is prohibited for a number of socially significant food products.  It also establishes deadlines for payment (10 days for produce) when concluding and implementing supply agreements.  The Law bans certain conditions for supplies, such as: return of unsold goods, requirement for a supplier to undertake marketing, rendering of product promotion services by the retail chain, the requirement to disclose conditions of work with other contractors.  The share of retail chains is restricted by the new Law to 25% of the food market of one region/city in order to avoid monopole situation.

Source: www.russianlawonline.com

Летом доля импортных фруктов составляет две трети от общего предложения на рынке России

По мнению экспертов, рынок свежих овощей и фруктов в России растет очень динамично: ежегодно на 20-30%. В основном, конечно, за счет импорта.

Россия, занимающая 11-е место в мире по производству плодоовощной продукции и 2-е место в мире по объему производства картофеля, слишком мало внимания уделяет развитию собственного плодоовощного производства. Производство фруктов в России развивается медленнее, чем производство овощей, что говорит о перспективах дальнейшего роста доли импортной продукции на рынке.

По мнению экспертов, причины этих тенденций следует искать в опережающих темпах развития оптовой торговли, которая старается обеспечить возрастающие потребности еще более стремительно развивающихся розничных сетей. Оптовикам гораздо проще работать с импортной продукцией, которая соответствует всем требованиям по качеству и упаковке, в то время как большинство российских производителей хотели бы переложить функцию доработки, калибровки, упаковки и даже хранения овощей и фруктов на оптовую компанию.

27/07/2010

Источник: www.lol.org.ua

The Share of Imported Fruits on the Russian Market Amounts to 60% of the Total Offer

According to experts’ estimations, the Russian fresh fruit market is developing dynamically, gaining 20-30% every year. This growth is basically due to the import though.

Russia takes the 11th place in the world among fruit and vegetables producers and is the 2nd potato grower in the world, but the local horticultural industry is underdeveloped. The Russian fruit production is growing slower than vegetable production, which implies the further increase of the import share.

The explanation of this trend experts find in the outstripping growth rate of the wholesale, which seeks to meet the demand of even faster expanding retail chains. The wholesalers find it easier to work with imported products, which correspond to quality standards and are duly packed, whereas the majority of Russian producers would like the wholesalers to be in charge of processing, calibration, packing and even storing of fruit and vegetables.

Source: www.lol.org.ua