Russia Business Directory
Russia’s retail sector has been growing by an average of 24 % per year, reaching USD244 bnin 2005. The growth is expected to continue for the years up to 2010.
Analysts from both Deutsche UFG and Renaissance Capital predict an average annual growth rate for the years up to 2010 of some 18 %, writes Elsevier Food international.
On a macroeconomic level, private consumption has become Russia’s key driving economic force. Russia is the fastest growing retail food sales market in the world and is ranked 2nd most attractive retail market (after India) in A.T.Kearney’s Global Retail Development Index 2005.
The number of international retailers has however made the retail market more competitive.
Retail growth in the coming years is expected to be stronger than GDP growth, driven by changing lifestyles and by strong income growth. Growing consumer credit will also help in boosting consumer demand.
Distribution continues to remain a major inefficiency. Poor quality of infrastructure, coupled with low quality of the distribution sector, results in logistics costs that are very high as a proportion of GDP, and inventories, which have to be maintained at an unusually high level. It’s a lot easier to cut manufacturing costs than it is to cut distribution costs. But this also is an opportunity for existing retailers to keep a check on their competitors.
Source: Research & Markets.com; Elsevier Food International, November 2006.
| Russia's top 10 retailers, rated by RosBusinessConsulting (RBC) | |||
¹ |
Company-owner | Chain Name | Turnover, mln USD |
1 |
X5 Retail Group | Pyaterochka, Perekrestok | 3 551.5 |
2 |
Metro Cash & Carry | Metro C&C | 2 557.8 |
3 |
Magnite | Magnite | 2 505.0 |
4 |
AUCHAN-Russia | Auchan | 2 020.0 |
5 |
X5 Retail Group | Pyaterochka | 1 973.1 |
6 |
X5 Retail Group | Perekrestok | 1 495.7 |
7 |
Lenta | Lenta | 1 016.0 |
8 |
Uniland Holding | Diksi | 1 009.2 |
9 |
Kopeika (Copeck) | Kopeika | 979.0 |
10 |
Sedmoy Kontinent (Seventh Continent) | Seventh Continent | 957.8 |
Leading retailers
X5 Retail Group N.V. - founded in 1995 by Alfa Group Consortium, presently the largest food retail company in Russia in terms of sales, working in three formats simultaneously: soft discounters, supermarkets and hypermarkets. X5 Retail Group has stores in 22 regions of the Russian Federation, as well as stores in Kazakhstan and Ukraine. Brand names in Russia: Perekrestok and Pyaterochka (eng)
Metro Russia - retail chain of German Metro, one of the largest and most international retailing companies worldwide (eng)
Magnite - supermarket chain throughout Russia (eng)
Auchan Russia - retail chain of French Auchan Group with 14 hypermarkets in Russia (eng)