Retailing in Russia 2009

Retailing In Russia 2009

Release date: April 1st, 2009 (45 pages)
PDF/Powerpoint format. Price: GBP620.00


A new report ‘Retailing in Russia 2009′ by analysis firm Research Farm provides a situational analysis of the development of the retail sector in Russia in the wake of the credit crunch and the military campaign in Georgia.

While the retail market in Russia has shown explosive growth rates since the turn of the century, recently the outlook has darkened considerably. As external factors outside the control of the Russian authorities such as the credit crisis, the onset of the global recession and the ensuing decline in the oil price have hammered Russia’s economy, the military campaign in Georgia has made matters worse.

This toxic combination of a global slowdown coupled with war has set the cycle of retrenchment in the Russian market in motion. Foreign and Russian capital is fleeing the country towards safety in the West, where liquidity and funds are desperately needed, and to a degree guaranteed by governments. Private investors have become increasingly nervous about government invention into the business sector and the evolving legislative environment. The Russian stock market has slumped as a consequence and value has been destroyed.

Tightening liquidity and a crashing Rouble have already slowed down economic growth significantly and in the wake of the expected recession we foresee unemployment to rise dramatically. This in turn will have a negative impact on consumer confidence and expenditure and lead to falling retail sales, industrial production and other economic activity in the country. This makes the Russian market a less attractive expansion target and makes it even harder for the various economic actors to raise funds to expand, setting the Russian market firmly on course of a downward spiral.

At a time of crisis when business strategy has to be redeveloped from scratch to allow for the changed reality on the ground, Researchfarm’s Retailing in Russia report provides vital insights.

Table of contents

Highlights 5 Socio–economic context 9 Retail 15 Grocery retailing 18 Non Food sectors 24 Consumer electronics 25 Home Improvement 28 Clothing 34 Strategic Outlook 38 Risk 39 Cycle of retraction 40 Outlook 42 Recommendations 44 References 45 List of Figures Map of Russia 10 Russia’s GDP 11 Brent Crude price 12 RTS (Stock exchange) 12 Macroeconomic indicators (I) 13 Macroeconomic indicators (II) 14 Retail 15 Grocery Retailing 19 Top 5 Grocery 21 Cycle of retraction 40 Recommendations 44