As per a recent report on “Russian Retail Sector Analysis (2007-2011)”it has been found that the steadily growing personal incomes, together with ongoing Ruble appreciation will likely expand the retail market’s size to reach US$ 744.92 Billion by 2011.
Retail industry in Russia is growing at an unparalleled pace compared to other countries (except India). The existing opportunities of growth have lured many overseas giants to launch their business in the Russian market.
According to latest data that Federal State Statistics Service (Rosstat) released, in Russia, retail sales grew 13.6% YOY to reach the level of 3.043 Trillion Rubles (US$117.456757 Billion) from January to April 2007. However, retail sales grew 13.8% to reach around 814.8 billion rubles (US$31.4504652 Billion) in this April alone. Registered trade firms made up 84.7% of overall retail sales during the month of April ’07, whereas unregistered market was accountable for almost 15.3% against the 80.2% and 19.8%, respectively, in the same month last year (2006).
Imported goods made up roughly 48% of the entire retail merchandizes in the Q1 2007, in comparison to almost 47% during the same period last year. Foodstuffs’ sales made up around 45.4% of retail sales during April this year, whereas the nonfood goods’ sales accounted for nearly 54.6% against the 45.6% and 54.4%, respectively, in the same period last year.
In view of that retail chains expand in size, independent operators continue to loss their market share. Proceeding further, retail market is expected to grow at a rate higher than Russia’s real disposable income.
Real disposable cash incomes increased 11.5% during January-April this year in comparison to the same period in last year. During April this year, incomes rose almost 9.2% against April 2006, Rosstat said.
As per the RNCOS report “Russian Retail Sector Analysis (2007-2011)”, “Post the slump due to the 1998 economic crisis, retail sales in Russia have been showing unswerving growth since the year 2001. Retail sales in Russia reached US$318 Billion during 2006. This also makes Russia second most profitable retail market globally, as per AT Kearney, and 12th biggest retail market across the globe in 2005, as per EIU.”
Key issues and facts analyzed in this report include: Russian Organized Retail’s market size, issues & growth prospects associated with the industry, opportunities and challenges faced by the Russian retailers, etc.
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