Retail is one of the fastest growing industries of the Russian economy. In recent years, Russia has emerged as a leading name among the countries providing most conducive retail environment. In fact, Russia is the second most attractive destination for retail after India, thanks to its rapid economic growth and favorable policy framework, which along with other supporting factors resulted in unprecedented growth level for the country’s retail industry. Retail sales in Russia grew at the CAGR of almost 25% during 2004-2008.
The rapid development of retail trade and high consumer spending has attracted large number of international players to Russia. At present every big name in retail industry from Metro, IKEA, Auchan is operating in the Russian retail market. These foreign chains are now expanding beyond large metropolis like Moscow and St. Petersburg to small tier 1 cities.
However the retail industry will witness negative growth during 2009 due to after impact of global financial crisis and slowing economy which will lead to low consumer confidence and contraction in consumer expenditure, but this is expected to be just a short term phenomenon. The industry will regain its lost momentum from 2010 onwards. As per our findings, retail sales will witness a healthy CAGR of around 18% during 2009-2013 and will surpass US$ 800 Billion by 2013.
The improving economic conditions, government support to push consumer spending and positive consumer outlook will help industry to recover the lost momentum. We anticipate the expansion plans by most of the foreign and local companies to grow rapidly once the Russian economy starts recovering from the aftershock of global financial crisis.
“Russian Retail Industry Forecast to 2013” provides detailed overview on the retail industry in Russia. It covers the past, current and future performance of the industry and identifies the factors responsible for the growth of the industry. 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 will help players preparing to enter the Russian market to analyze the emerging market segments to ensure their success.