Although 2009 will be the most challenging year for the Russian retail industry, but slow economic growth and low liquidity level will not be able to hamper the growth trajectory of large retail formats like hypermarket and supermarket. These formats will gain market share from other retail formats and witness a healthy growth in coming years, thus driving the overall Russian retail market.
According to a new study, “Russian Food and Non Food Retail Forecast (2009-2012)” by RNCOS, the retail industry is growing dynamically and undergoing rapid transformation in Russia. The market is still highly fragmented in nature with top 25 retailers accounting for less than 15% of the total market. The current market conditions will promote the expansion of large retail formats as these stores can offer heavy discounts and cater to large consumer base.
Despite the current economic situation, these formats were able to attract large number of consumers and offer them better value for their money. Discount schemes and rising share of private labels in product portfolio were responsible for the unprecedented growth of these formats in Russia.
In future, it is anticipated that hypermarkets, supermarkets and soft discounters will drive the overall industry sales, contributing more than 50% of the industry growth in next five years. Also, various budgeted retailers, especially in food retail segment, are expected to suffer least as consumers will try to focus on trimming unnecessary spending first due to recession.
The research also studies the behavior of the Russian consumer with respect to his purchasing power, spending pattern, and inclination towards domestic and foreign brands. The future growth areas discussed in the report helps the clients to analyze the emerging market segments for players.
For more information visit: http://www.newsonretail.com/Report/IM168.htm |
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