In 2012 Lenta, based in St. Petersburg, is planning to open 1-2 hypermarket in Novosibirsk, one in Omsk, Barnaul, Surgut, Tcheboksary, Ufa, Volgograd and Novorossiysk.
At the moment the company is operating 42 stores in 22 Russian cities: 14 in St. Petersburg, 5 – in Novosibirsk, 2 in Nizhny Novgorod, Krasnodar and Omsk, one in Tyumen, Astrakhan, Volgograd, Barnaul, Novorossiysk, Rostov-Don and others.
Source: www.retail.ru
Billa, the Central European arm of German retail giant Rewe, wants to take over Russian supermarket chain Citystore. Moscow-based Citystore confirmed talks with Billa were being held.
In addition, Russia’s competition regulator, the Federal Antimonopoly Service, confirmed that Billa has requested approval to take over the chain. Experts in Russian media estimate the value of the deal at US$70-100m.
Citystore is owned by Turkish conglomerate Enka and consists of 17 supermarkets, all of which are based in Moscow or the region of Moscow.
Billa entered the Russian market in 2004 and operates 72 supermarkets, the lion share of which are also located in the Russian capital.
Source: www.just-food.com
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
The SPAR International company, which operates the supermarket chain Spar, has concluded license agreement with trade house Intertorg (supermarket chains Narodnaya Semya and Idea). Under this agreement TH Intertorg receives an exclusive right to operate supermarkets under the brand Spar in the North-West of Russia, including St. Petersburg and Leningrad Region, the Republic of Karelia and Petrozavodsk, Pskov and Pskov Region, Vologda and Vologda Region, Velikiy Novgorod and Novgorod Region. Spar will be consulting Intertorg on marketing, logistics, HR, sales and other issues.
Spar – is one of the world’s largest retail chains, operating 16,000 supermarkets in 34 countries. It entered the Russian market in 2000 and has already opened 244 supermarkets since then. Intertorg is planning to open the first supermarket under the Spar brand in summer 2011.
Source: www.retail.ru
One of the largest food retailers in Russia OAO Dixy reported earnings growth by 21.6% in the first 5 months in 2011 to Rub 31.2 bln. In the financial year 2010-2011 the company experiences significant rebound after the recession. As per IFRS the company’s earnings have been growing since 2005. After two years of profit growth in 2005-2007, the company suffered from losses during the financial crisis 2008-2009. To date the net profit index is back into the black, but hasn’t reached the pre-crisis level yet.
Source: www.retail.ru
March 2011 Russian retail turnover grew by 4.8% y-o-y and reached RUB 1.458bn. Food items, drinks and tobacco sales turnover was RUB 713.4bn, which is 1% more than a year ago. Q1 2011 food items retail turnover grew by 1.2% to RUB 2.04bn, non-food items turnover made RUB 2.1bn, 8.3% more than 2010. March 2011 food items retail turnover accounted for 48.9% of the total retail turnover, the share of the non-food items was 51.1%.
Source: www.retail.ru
The consolidation process, which has already started in the Russian retail market, will be over in 5-7 years. The experts predict that 4-5 largest retail market players will occupy up to 90% of the market. At the moment all retail chains hold a 30% market share, less than 15% belongs to 5 major players. In 5-7 years retail will occupy about 80-90% of the whole market. The rest 10-20% will belong to collective farm markets and super-specialty shops (cheese or butcher’s shops), which will offer goods which can’t be found in a supermarket.
Source: www.foodretail.ru
In 2010, Russian retail market recovered after the economic slowdown observed in the previous year and increased by 12.6% to RUB 16.4tr ($541bn). However, the latest PMR report „Retail in Russia 2011 – Regional focus. Market analysis and development forecasts for 2011-2013” shows that particular regional retail markets still reveal differences in their development due to their unique nature and local characteristics.
Being the smallest and the most populous region of Russia, the Central Federal District remains the largest retail market in the country, accounting for 34% of country sales in 2010. The majority of the largest retailers in Russia originate from Moscow, which gives the Central Federal District the special status of the region accommodating the leading domestic operators as well as foreign retailers establishing their presence in Russia.
In dollars, retail market in Russia gained 80bn in 2010, of which 60bn excluding an effect of exchange rates. The majority, i.e. more than one-third, was worked out in the Central Federal District. The Southern and Volga Federal Districts contributed to the Russian growth evenly. Owing to these three districts, the Russian retail market gained nearly $57bn in 2010.
The expectations of local retail operators regarding future development after the financial crisis vary considerably depending on the retail sector. Thus, in grocery retailing the financial crisis has stimulated market consolidation. The segment witnessed many takeovers across the country. Generally, according to PMR report, the retailers remain optimistic regarding the future development of the market.
Source: www.freshplaza.com
X5’s largest shareholder, Alfa Group, is reportedly considering a merger with a large market player – namely Metro Group or Turkish Migros – in the next two years, Kommersant reported.
New CEO Andrei Gusev, who was previously head of X5’s M&A department, said that the retailer was not interested in an acquisition in its domestic market, a strategy which X5 has followed over the last five years.
With new management in place, X5 is changing its strategy. It plans to grow organically, partly because there is lack of acquisition targets in the Russian retail scene, but also because the retailer has a lot of debt.
Source: www.retailer.ru, www.foodnewsweek.ru
Magnit, which has the largest number of retail outlets in Russia, intends to invest USD1.5 billion in opening 800 convenience stores, about 200 drugstores under the Magnit Cosmetic brand and up to 55 hypermarkets in 2011, the retailer said. In contrast to this, Auchan has announced it will be opening fewer stores than planned in 2011, as it is hard to find suitable land.
Last year the retailer opened 800 supermarkets and neighbourhood stores and 27 hypermarkets, whereas its rival X5 has expanded its store network by around 480 stores.
Source: www.retail.ru