European Proceedings Logo

Russian Retail: Modern Condition And Development Trends

Table 3:

Stage Characteristics Formats, examples
1994 – 1998 - The transition from wholesale to retail;- active development of retail markets;- the emergence (1997) of the first domestic retail networks;- the first foreign network "Ramstore" (1997);- the share of network trading is 1%. Active development of market trade, expensive supermarkets
1998 – 2000 - Expansion of the range of domestic goods;- reduction of trade margin;- the transition from supermarkets to discounters;- an increase in the number of regional retail chains (food);- the share of network trading is slightly higher than 1%. Active development of the discounter format (Pyaterochka, Kopeika, Magnit, Dixie)
2000 – 2005 - Increased competition of domestic networks;- active introduction of foreign trade network structures;- retailers dictate rules to manufacturers;- network companies are starting to develop franchise programs (2002);- X5 Retail Group N.V. launches the first PL;- Pyaterochka trading network opens the largest distribution center in the North-West (2003);- 2003–2004 Russia occupies the first place in the ranking of attractiveness for entry of global retail chains (according to A.T. Kearney consulting company);- the share of network trading reaches 24%. A new format for Cash & carry appears in Russia.Active opening of hypermarkets. Opening of the Swedish store Ikea.Auchan, the largest French hypermarket chain, has been operating in the Russian market since 2002.
2005 – 2008 - development of new formats and multi-format;- the introduction of category management;- active expansion of retail in the regions;- uneven regional development of retail;- the share of retail chains in 2007 was 32.6% of the market. The largest representation of formats: discounter, supermarket, сash & carry, hypermarket "convenience store"
2008 – today - The development of more than 700 retail chains of various levels: from international to regional (according to the INFOLine information agency);- concentration through mergers and acquisitions of local regional networks;- the share of retail chains amounted to 55% of the retail trade in food products by 2017;- the largest M&A deal in Russian retail in 2008 - the purchase of the «Carousel» network by X5 Retail Group N.V.;- a network of wholesale and retail enterprises was formed in the DIY segment - “DIY Retail Russia TOP” (more than 100 retail and small wholesale chains of building materials and household goods). Modern formats continue to actively develop: a discounter, a supermarket, a cash & carry, a hypermarket an "convenience store"Multiformat trade networks.
< Back to article