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.
The retail market in Russia has begun to show signs of recovery after the financial crisis. Although the retail industry has grown continuously, there was a steep fall in the growth rate, from 28.1% in 2008 to 4.7% in 2009. According to the latest PMR report, “Retail in Russia 2011. Market analysis and development forecasts for 2011 2013”, in 2010, the retail market increased by almost 13% in comparison with the previous year and was worth RUB 16.5tr ($543.5m).
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.
One major change in the competitive landscape of the retail market was the bankruptcy of some of the leading players. These include Tsifrograd and Dixis, both mobile phone retail operators, the Mir and Domo consumer electronics chains and the Alpi grocery chain.
The past 12 months have also seen several transactions which involved the largest retail chains. For example, the Kopeyka chain was acquired by the X5 Retail Group at the end of 2010. At the beginning of 2011, the Dixy Group announced that it was planning to acquire the Victoria Group, which develops the Victoria, Kvartal, Dyoshevo, Cash and Semeinaya Kopilka chains.
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.
The most significant changes took place in the consumer electronics industry. In 2010 Eldorado surrendered its leadership to M.Video. At the same time, Media Markt overtook Technosila, the third-largest player. The competitive landscape of the DIY market also changed, as Leroy Merlin became the leader, with sales worth RUB 36.8bn ($1.2bn) in total in 2010.
Foreign retailers are active mostly in groceries, clothing and footwear, consumer electronic appliances and DIY retail. Mobile phone stores and pharmacies are, conversely, dominated by Russian chains.
This press release is based on information contained in the latest PMR report entitled “Retail in Russia 2011. Market analysis and development forecasts for 2011-2013”.
For more information on the report please contact:
tel. /48/ 12 618 90 00