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FACTBOX-Key facts about Russia’s retail sector PDF Print E-mail
Wednesday, 02 December 2009 12:41

 Dec 2 (Reuters) - Global retailers, faced with sluggish
growth at home, are keen to expand in emerging markets such as
Russia, which still offers high growth potential despite the
economic downturn. [ID:nGEE5B111V] [ID:nL2543362] [ID:nLG749028]
 Here are some facts about Russia's retail sector:

 MARKET OVERVIEW
 TURNOVER: 14 trillion roubles ($480 billion) in 2008, a 27.5
percent rise year-on-year on the back of high oil prices and
strong economic growth in an under-served market. Food accounts
for 45.3 percent of sales
 OUTLOOK: In October, sales fell by 8.5 percent year-on-year
and VTB Capital sees growth slowing to 4.5 percent this year due
to worsenening macroeconomic conditions.
 Food sales are forecast to rise 12.9 percent after a 28.4
percent increase in 2008, while non-food turnover may fall 2.4
percent against 26.8 percent growth last year

 KEY RUSSIAN PLAYERS
 X5 RETAIL GROUP (PJPq.L)
 Russia's biggest grocer by revenue and part of billionaire
Mikhail Fridman's empire Alfa Group. Sales $9 billion in 2008
 MAGNIT (MGNTq.L) (MGNT.MM)
 Fast expanding network of hypermarkets and hole-in-the-wall
discount groceries. 2008 sales $5 billion
 DIXY GROUP DIXY.MM 
 Discount chain controlled by businessman Igor Kesayev
through his Mercury holding company. Sales in 2008 $1.5 billion
 SEVENTH CONTINENT (SCON.MM)
 Upscale Moscow chain, a potential acquisition target by
virtue of a 75 percent stake pledged by owner Alexander
Zanadvorov with Deutsche Bank. Sales $1.4 billion
 M.VIDEO (MVID.MM)
 White goods retailer. Sales in 2008 $2.7 billion
 KOPEIKA
 Discounter. 2008 sales $2 billion
 LENTA
 St Petersburg hypermarket chain. 2008 sales $2 billion

 MAIN INTERNATIONAL PLAYERS
 WAL-MART (WMT.N)
 With a Moscow office and membership of a Russian retail
lobby group, continues to explore investment opportunities in
Russia and neighbouring markets. It has been linked to multiple
potential deals but none has yet materialised.
 METRO AG (MEOG.DE)
 Operates Metro Cash & Carry, Real hypermarkets and Media
Markt. Pioneered Russian retail, opening its first Moscow store
in 2001, and now has more than 70 stores in Russia
 AUCHAN [AUCH.UL]
 Opened its first Moscow store in 2002, has expanded widely
in provinces and currently operates more than 30 hypermarkets.
 CARREFOUR (CARR.PA)
 The world's No.2 retailer after Walmart, opened its first
Russian store in Moscow in June and second store in the southern
city of Krasnodar in September, but failed to strike a deal for
distressed Seventh Continent (SCON.MM) and decided to pull out
of Russia after only four months. [ID:nLF662106]
 KESKO OYJ (KESBV.HE)
 Finnish retailer says it hopes to introduce its food
operation to Russia next year and is considering acquisitions in
the country, including Carrefour hypermarkets.
 IKEA
 Sweden's IKEA, the world's biggest furniture retailer, has
opened 12 stores in Russia since 2000, but will not make any new
investments in the country until the tangle of red tape that has
kept its finished store shut for nearly two years is unravelled
[ID:nLG642261]
 H&M (HMb.ST)
 Swedish fashion giant Hennes & Mauritz (H&M) opened two
Moscow stores in March and will open at least one more in Moscow
and one in St Petersburg in 2010 [ID:nLC945940]
 STOCKMANN (STCBV.HE)
 Forced to close its flagship Moscow store after the landlord
cut off the electricity supply, but still has aggressive
expansion plans in Russia [ID:nLU198906]
 COLLECTIVE BRANDS INC (PSS.N)
 To open Payless ShoeSource in 2010 with local franchise
partner M.H. Alshaya. It plans to open at least 90 stores in
about five years [ID:nBNG411773]
 LIMITED BRANDS (LTD.N)
 Limited Brands plans to introduce its Victoria's Secret
lingerie chain to the Russian market and is searching for a
candidate to head the Russian operations, sources said.
 HAMLEYS
 The British toy retailer seeks new partners in Russia after
talks failed with local retailer F.D. Lab Group, which wanted
Hamleys to lower royalty fees [ID:nLD505730]
 HARVEY NICHOLS
 The luxury department store failed to identify a suitable
location for a Moscow department store because of high real
estate prices [ID:nL6989766]
 JERONIMO MARTINS (JMT.LS)
 Portuguese retailer said last month it was resuming its
international expansion and seeking to enter one new market in
Central or Eastern Europe in the next three years, with Russia,
Ukraine and Romania being named as likely spots. [ID:nLB719631]
 (Compiled by Maria Kiselyova; Editing by David Cowell)
 ((
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 , +7 495 775 12 42, Reuters
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  This e-mail address is being protected from spambots. You need JavaScript enabled to view it
 ))
 ($1=29.17 Rouble)

© Thomson Reuters 2009 All rights reserved








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