This document provides an overview of the Russian retail sector. It summarizes key economic indicators for Russia from 2009 to 2013, showing GDP growth and inflation. The retail trade turnover grew significantly from €183.4 billion in 2006 to €474 billion in 2013. Russian shoppers are divided into seven consumption styles. Food makes up the largest portion of average household expenditures. Major food retailers include supermarkets, supercenters, warehouse clubs, and convenience stores. General merchandise retailers include department stores, discount stores, specialty stores, and others. The top ten retailers by sales in Russia are identified, with details provided on the largest ones - Magnit, Auchan Group, and X5 Retail Group.

1. Retailing In
RUSSIA
Presented By :
Nana Amako
Hatice Gürkaş
Berivan Altındağ

2. An Overview OF The Russian Economy
2009 2010 2011 2012 2013
Nominal GDP ,
Billion ( $ )
1,293 1,474 1,860 2,007 2,098
Real GDP growth,
% change
-7,9 4.0 4.3 3.4 1.3
Population,
millions
141.9 141.9 142.96 143.1 143.5
Unemployment 8.2 7.5 6.6 5.7 5.5
Inflation % 8.8 8.8 6.1 6.6 6.5
Exchange rate
(per $1 )
31.76 30.36 29.35 31.07 31.82
Source: Federal State Statistics Service, The Central Bank of Russian Federation, 2014

3. The Russian Retail Sector
 Russia’s retail trade turnover according to Accenture report of
19.09.2013
2006
€183,4bn
2013
€474,…

4. Culture and Trends of Russian
Shoppers
 Seven consumption styles
• Thrifty
• Traditionalist
• Settled
• Self-realized
• Ambitious
• Spontaneous
• Innovators
The Russian Consumer base is divided sharply between brand-conscious high
end consumers and price-sensitive low-end consumers, providing opportunities
for different retail formats

5. Composition of average Household
Expenditure

6. Types of Merchandise Retailers
Food Retailers General Merchandise Retailers
Department Stores
Specialty Stores
Discount Stores
Category Specialists
Off-Price Retailers
Warehouse Clubs
Value Retailers
Convenience Stores
Supermarkets
Supercenters
Warehouse Clubs

7. Food Retailers
 Channel preference for food shopping channel where
grocery purchasers do most of their food shopping
– Supermarkets
– Supercenters
– Warehouse Clubs
– Convenience Stores

8. -Conventional Supermarkets
 Percentage Food : 70-80
 Size (000 sq. ft.) : 35-40
 SKUs(000) : 30-40
 Variety : Average
 Assortment : Average
 Ambience : Pleasant
 Service : Modest
 Price : Average
 Gross margin(%) : 20--22
Supermarkets
- Limited assortment supermarkets
 Percentage Food : 80-90
 Size (000 sq. ft.) : 7-10
 SKUs(000) : 1-1,5
 Variety : Narrow
 Assortment : Shallow
 Ambience : Minimal
 Service : Limited
 Price : Lowest
 Gross margin(%) : 10-12

9. MAGNIT GROUP

10. Supercenter(Hypermarket)
• Percentage Food : 30-40
• Size (000 sq. ft.) : 160-200
• SKUs(000) : 100-150
• Variety : Broad
• Assortment : Deep
• Ambience : Average
• Service : Limited
• Price : Low
• Gross margin(%) : 15-18
Auchan Group

11. Warehouse Club
• Percentage Food : 60
• Size (000 sq. ft.) : 100-150
• SKUs(000) : 20
• Variety : Broad
• Assortment : Shallow
• Ambience : Minimal
• Service : Limited
• Price : Low
• Gross margin(%) : 12-15
Ozon.ru

12. Convenience Store
• Percentage Food : 90
• Size (000 sq. ft.) : 3-5
• SKUs(000) : 2-3
• Variety : Narrow
• Assortment : Shallow
• Ambience : Average
• Service : Limited
• Price : High
• Gross margin(%) : 25-30
Lenta

13. Characteristics of
General Merchandise Retailers
• Department Store
• Specialty Stores
• Discount Stores
• Category Specialists
• Off-Price Retailers
• Warehouse Clubs
• Values Retailers

14. Department Store
• Variety : Broad
• Assortment : Deep to average
• Service : Average to high
• Price : Average to high
• Size (000 sq. ft.) : 100-200
• SKUs(000) :100
• Location :Regional malls
TsUM

15. Discount Stores
• Variety : Broad
• Assortment : Average to shallow
• Service : Low
• Price : Low
• Size (000 sq. ft.) : 60-80
• SKUs(000) : 30
• Location : Stand alone, power
strip centers
X5 Retail Group

16. Specialty Stores
• Variety : Narrow
• Assortment : Deep
• Service : High
• Price : High
• Size (000 sq. ft.) : 4-12
• SKUs(000) : 5
• Location : Regional
malls
Eldorado

17. Category Specialists
• Variety : Narrow
• Assortment : Very Deep
• Service : Low the high
• Price : Low
• Size (000 sq. ft.) : 50-100
• SKUs(000) : 20-40
• Location : Stand alone,
power strip centers
Euroset

18. Drugstore
• Variety : Narrow
• Assortment : Very deep
• Service : Average
• Price : Average to high
• Size (000 sq. ft.) : 3-15
• SKUs(000) : 10-20
• Location : Stand alone,
strip centers
Rigla

19. Top 10 Retailers In Russia

20. MAGNIT
• The company was founded in 1994.
8256
convenience
stores
leading
retailer in
Russia by
sales.
2,019
locations in
Russia
230,000
employees

21. Auchan GROUP
World’s
11th largest
food
retailer
1,600 store
2,000
franchises
and
associates
300,000
employees
• The company was founded in 1961.

22. X5 RETAIL GROUP
• The company was founded in 1961.
•
Russian
food
retailer
2,545
store
109,000
employes