Russian retail market

X5 posts lower profit

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Russian retailer X5 Retail Group N.V. posted lower profit for the first quarter, but net sales rose from last year.
The group’s net profit for the quarter slipped to $65.1 million from $66.3 million a year ago. Profit before tax slid to $86.6 million from $90.3 million. However, EBITDA rose 3.7 percent to $284.2 million.

Net sales, in US Dollars terms, rose 7.5 percent to $4.160 billion. However, net sales, in RUR terms, grew 8.0 percent, which the group primarily attributed it to an 8.1 percent increase in net retail sales, resulting from organic store additions, price inflation, the positive performance of maturing stores added over the past two years and on-going promotional activities.

Source: www.freshplaza.com

Spar to launch premium format

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Spar Retail – one of the Russian partners of the Dutch Spar grocery retail concern – is planning to open stores in a new premium supermarket format. The concept is ready, and, if it is approved, the Spar first premium class store will open in the Moscow region by the end of 2013. It will operate on a trading space of 600 m2.
Today, the main business of Spar Retail, which now operates in the middle-plus bracket, is represented by 24 outlets in Moscow, the Moscow Province and Vladimir. Each of the stores takes up about 600 m2, and the largest variation – more than 1,000 m2.
In Russia overall, the Spar brand is developed by 11 partners: Spar Retail, Spar Middle Volga, Spar Tula, Spar Vostok, Spar Chelyabinsk, Spar Komi, Spar Severo-Zapad, Spar Tyumen, Spar Krasnoyarsk, Spar Irkutsk and Spar Tomsk.
According to Kommersant, in 2012 the premium subdivision of the retail market in Moscow generated sales worth more than $5bn.

Source: www.russiaretail.com

Magnit sales up again

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Russian food retailer Magnit said last week its sales rose by 33 percent in April, year-on-year, to stand at 45.8 billion roubles ($1.5 billion), in line with growth in the previous month.

Magnit, which recently overtook rival X5 as Russia’s biggest grocery chain by revenue, said the April result brought sales for the first four months of the year to 177 billion roubles, an increase of 31 percent.

The company, also Russia’s biggest food retailer by store count, opened 92 stores in April, bringing its total to 7,167 as of April 30.

Magnit had said it plans to grow revenue by between 27 and 29 percent in rouble terms this year, compared with about 34 percent in 2012, backed by a $1.8 billion capital spending programme.

Source: www.freshplaza.com

Russian retail up 4% year on year in Q1 2013

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Retail sales revenues in Russia grew by 3.9% year on year in real terms and were valued at RUB 5.23tr ($164.78bn) in Q1 2013, according to the Russian Federal Statistic Service (Rosstat). This was against a 7.9% y-o-y increase in Q1 2012.
In addition, a 4.4% real yearly increase was registered in March 2013 alone, against 4.2% in January this year. Retail companies and sole traders account for 90.5% of retail trade in Russia in March 2013, with 9.5% shared by retail markets and fairs against 89.5% and 10.5% respectively in March 2012.
What is more, the Russian Ministry of Economic Development has dropped the forecast growth rate for retail from 5.6% to 4.3% in 2013. In 2012 retail sales revenues grew by 5.9% in real terms.

Source: www.russiaretail.com

Magnit overtakes X5

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Magnit overtook sales at its rival X5 Retail Group NV for the first time since the company opened stores 15 years ago.
X5, controlled by billionaire Mikhail Fridman’s Alfa Group, posted an 8.1 percent increase in first-quarter sales to 126 billion rubles ($4.1 billion), it said in a statement. Krasnodar-based Magnit said earlier this week that quarterly sales rose more than 30 percent to 131 billion ruble.
“I’m afraid to be found immodest, but for the first time over the last 15 years after opening of the first store we have become the leader in the food retail sector by sales,” Galitskiy said in a statement.
Since 2008 Magnit has tripled its store network to more than 7,000, building new outlets from scratch in Russia’s regions. In 2011, Magnit exceeded the market value of X5, which had expanded by acquiring rivals including Karousel an Kopeyka.
“In the last two years, X5 has been having problems in digesting its acquisitions and managing stores, which led to customer outflow,” Ivan Kushch, analyst at Moscow-based VTB Capital said by phone. “Magnit was set to overtake it by sales sometime this year.”
Magnit has risen 72 percent in the past 12 months, giving it a market value of $23.7 billion. X5 is worth $4.8 billion after falling 22 percent over the same period.

Source: www.freshplaza.com

10,000 new Magnit stores in 5 years

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Magnit, Russia’s largest food retailer by market value, plans to open almost 10,000 stores in the next five years, or more than five a day on average.
Magnit wants to double the number of convenience stores to 12,000 by the end of 2017, and to quadruple the number of hypermarkets to 500, the Krasnodar, southern Russia-based retailer said.
Magnit has doubled its store network in the last three years, while shares have risen more than 150 percent. Magnit has a market value of about $21 billion in London, exceeding French retailer Carrefour SA’s (CA) $19.5 billion.
Magnit’s long-term targets look aggressive and may require about $12.8 billion of capital spending during the next five years funded by a sale of new shares, Mikhail Terentiev, an analyst at Otkritie Capital, said.
The retailer plans to use cash flow and borrowing in equal proportions to fund growth. Capital spending will be as much as $1.8 billion this year.

Source: www.freshplaza.com

Billa to open 15 stores in Russia

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Rewe Group’s Billa supermarket banner is set for expansion in Russia this year, with plans to add 15 stores to its network.

Janusz Kulik, a board member of Rewe International broke the news, saying, “Russia is one of the priority markets for the group and provides good growth.” He added that the group is in the market for acquisitions but asking prices are high.

Source: www.freshplaza.com

Okey Group opens 4th hypermarket in Moscow region

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Okey Group S.A., one of the leading Russian food retailers, announces the opening of its 4th hypermarket in Moscow region.

The new hypermarket is located outside of the city boundaries in a new commercial center. Total space of the hypermarket is 10,600 sq.m.. The trading area of the hypermarket is 6,900 sq.m.. The store offers customers more than 34,000 SKUs, with non-food items accounting for approximately 65% of the total. The store has 370 employees.

This is the Company’s 53rd hypermarket, and 84th store overall, including supermarkets, with aggregate trading space exceeding 434,000 sq.m.

Okey is one of the largest retail chains in Russia. Its primary retail format is the modern Western European hypermarket under the Okey brand, complemented by “Okey – Express” supermarkets.

The Company opened its first hypermarket in St. Petersburg in 2002 and has demonstrated continuous growth ever since. As at 30 June 2012, Okey operated 75 stores in 18 cities across Russia: 45 hypermarkets with an aggregate selling space of approximately 329,000 square meters and 30 supermarkets with an aggregate selling space of approximately 39,000 square meters. As of 30 June 2012 Okey employed more than 20,000 people.

In accordance with the unaudited consolidated financial statements for 1H 2012, Okey’s revenue was RUR 54,122 million, like-for-like revenue growth rate was 7.9% and its EBITDA margin was 6.8%.

Source: www.okmarket.ru

 

Metro Cash & Carry earns €4.12bn in Russia in 2012

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Metro Cash & Carry, a German grocery retailer (and part of the Metro Group), reported sales in Russia of €4.12bn in fiscal 2012, against €3.42bn in 2011 (a 20.4% y-o-y increase).

During the last year the company opened six hypermarkets in the country, and by the end of 2012 Metro Cash & Carry operated 68 outlets.

What is more, another grocery brand in the group, Real, increased its sales in Russia from €722m in 2011 to €859m last year (19% y-o-y growth). However, Real chain is to be acquired by the French Auchan, and the deal is to be completed this year.

Source: www.russiaretail.com

Azbuka Vkusa to develop small shopping malls in Moscow and Leningrad Provinces

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Azbuka Vkusa, a premium class grocery retailer, is planning to build 15 shopping centres in the Moscow and Leningrad Provinces within the next five years. Each will cover up to 4,000 m2 and will house an Azbuka Vkusa supermarket on about 2,000 m2. The rest of the areas will be let to rent to fast food restaurants, laundries and other small businesses. The project development was prompted by a lack of suitable premises and the total amount invested is estimated to be $150m.
Today, Azbuka Vkusa has 53 supermarkets in and around Moscow and St. Petersburg. As Retail Update Russia reported on a previous occasion, the company recently announced plans to expand on the Ukrainian market.

Source: www.russiaretail.com