Retailing in Russia

Publication Date	May 2009
Publisher	Verdict
Product Type	Report
Pages	106
ISBN Number	not applicable
Product Code	VDT00429

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Summary

After years of buoyant growth Russia's retail prospects have worsened as deteriorating macroeconomic conditions and a recessionary environment feed through to weaker demand and declining retail sales. Despite this many retailers and suppliers are continuing with their expansion plans, motivated by the strong and indisputable future growth potential of the market.

Proprietary market value and growth data for Grocery, DIY, Electricals, Furniture and Clothing (including Department store) sectors from 2003-2008
Competitive insight into the store numbers, areas, brands, recent financial performance and future direction of the country's leading retailers
Visibility on the foreign retailers that have entered or are entering the Russian market and a discussion of their chosen regions and strategies
A comprehensive socio-economic assessment including indicators such as GDP, consumer expenditure, inflation, employment and population distribution

The global financial crisis has hit Russian retail hard. In January sales rose modestly by just 2.4% year-on-year marking a continued downward trend in growth rates. Consumers have had to cut back and are increasingly focused on value for money. Since the unfolding of the crisis, there has been a greater uptake in private label goods.

The food and grocery sector will be the least affected by Russia's macroeconomic and financial woes and discounters in all sectors will thrive whilst upmarket retailers will suffer. The period of frivolous Russian spending has come to an end and several luxury retailers have decided to withdraw from the market amid worsening trading conditions.

Though it remains a risky market, the long term gains on successful market entry are abundant. Russia continues to attract major foreign retailers. Carrefour and H&M are set to open in 2009 and Wal-Mart is also exploring opportunities in the Russian market. More retailers are likely to follow suit in the future.

Assess market potential and threats by accessing sector size data and seeing how consumers and retailers have reacted to recent economic turbluence
Maximise return from market entry or expansion investments by uncovering the next 'hot' cities and regions for development
Identify foreign and domestic retailers and formulate your competitive position in regards to future initiatives in areas such as branding and formats

Content

Chapter 1 Executive Summary
- Key Findings
- Main Conclusions
Chapter 2 Russia Economic Overview
- Gdp
- Consumer Expenditure
- Inflation
- Interest Rates
- Unemployment
Chapter 3 Russia Demographic Overview
- Russia Population Profile
Chapter 4 Russia Retail Spending
- Expenditure And Growth
- Per Capita
- Retail Share Of Consumer Spend
Chapter 5 Strategic Issues
- Past
- The Russian Retail Market To Date
- Present
- The Situation Now
- Consumers Trade Down And Cut Back
- Private Label Growth
- Winning Formats
- Suffering Sectors
- Regionalisation Breaking Into The Millions
- Future
- Short Term Outlook Bleak
- Consolidation
- Long Term Potential Attractive
- But Red Tape, Corruption And Infrastructure Problems Remain
Chapter 6 Food & Grocery
- Market Summary
- Market Shares Of Grocery Retailers In Russia
- Domestic Players
- X5 Retail Group
- Magnit
- Lenta
- Dixy
- Other Domestic Chains
- International Players
- Auchan
- Metro
- Rewe
- New Entrants
- Outlook
Chapter 7 Clothing
- Market Summary
- Distribution Channels
- Department Stores
- International Department Store Operators
- Domestic Players
- International Players
- New Entrants
- Cee Payers Entering The Russian Market
- Remote Shopping
- Outlook
Chapter 8 Diy
- Market Summary
- Distribution Channels
- Domestic Players
- International Players
- Outlook
Chapter 9 Electricals
- Market Summary
- Distribution Channels
- Specialists
- Non-Specialists
- Online
- Domestic Players
- Eldorado
- M Video
- Tekhnosila
- Other Russian Specialists
- Mobile Phone Specialists
- International Players
- Outlook
Chapter 10 Furniture
- Market Summary
- Domestic Players
- International Players
- Outlook
Chapter 11 X5 Retail Group
- Company Overview
- Recent Key Developments
- Trading
- Year To December 2007
- Year To December 2008
- Benchmarks
- Stores
- Outlook
Chapter 12 Glossary
- Definitions
- Abbreviations
List Of Tables
- Table 1: Russia Retail Expenditure 2003-2008e
- Table 2: Russia Food & Grocery Market Size 2003-2008e
- Table 3: Russia Food & Grocery Market Shares 2008
- Table 4: Russia Clothing Market Size 2003-2008e
- Table 5: Russia Diy Market Size 2003-2008e
- Table 6: Russia Electricals Market Size 2003-2008e
- Table 7: Russia Furniture Market Size 2003-2008e
- Table 8: X5 Retail Group Company Overview 2009
- Table 9: X5 Trading Record 2006-2008
- Table 10: X5 Sales By Type Of Store 2007 On 2006
- Table 11: X5 Including Karusel Benchmarks 2007-2008
- Table 12: X5 Store Portfolio 2006-2007
- Table 13: X5 Space 2007
List Of Figures
- Figure 1: Russia Gdp 2002-2008
- Figure 2: Russia Real Gdp Growth And Forecast 2002-2010
- Figure 3: Russia Consumer Expenditure 2002-2007
- Figure 4: Russia Consumer Expenditure Per Capita 2002-2007
- Figure 5: Russia Cpi Inflation 2000-2008
- Figure 6: Central Bank Of Russia Interest Rates 2002-2008
- Figure 7: Russia Unemployment 2002-2008
- Figure 8: Population Of Russia (Millions) 1993-2008
- Figure 9: Russia Regional Population Density 2008
- Figure 10: Russia Per Capita Retail Spend 2003-2008e
- Figure 11: Russia, Cee, Uk And Germany Retail Spend As % Of Total Consumer Expenditure 2002 And 2007
- Figure 12: Retail In Russia Timeline: Past, Present And Future 2000-2012
- Figure 13: Snapshot Of Russian Retail 2009
- Figure 14: Key Regional Targets For Expanding Retailers 2009
- Figure 15: Regional Expansion By Three Leading International Players 2008
- Figure 16: Russia Electricals Market Concentration 2008-2010(F)
- Figure 17: Russia Food & Grocery Market Concentration 2008-2010(F)
- Figure 18: Russia Retail Expenditure On Food And Non-Food 2000-2008
- Figure 19: Growth Potential Of Russian Food And Grocery Market
- Figure 20: Opportunities In And Threats To Russian Retail 2009
- Figure 21: Billa, Moscow, 2006
- Figure 22: Tsum Moscow 2008
- Figure 23: Gum Moscow 2008
- Figure 24: Leroy Merlin Russia 2009
- Figure 25: Castorama Omsk 2008
- Figure 26: Ikea Novosibirsk 2008