Distribution Networks in Russia

Overview by Globlatrade.net:

Types of Outlet

Located on the outskirts of large towns.
Food, cleaning products, cosmetics, clothes, jewelery, electronics.

Real, Auchan
Located in residential areas, near a metro station or on a main road.
Food, cleaning products, cosmetics.

Perekrestok, Ramstor, Sedmoi Continent, Mega
Specialized stores
Located either on the outskirts, or in the city-center, generally in shopping malls.
Sports items, furniture, DIY, clothes, hardware.

Intersport,Sportmaster, Ikea, Shatura, Leroy Merlin, Castorama, Collins, Sela, Mexx, Arbat Prestizh, Douglas-Rivoli
Discount stores
Located in residential areas.
Mainly food.

Diksi, Magnit, Kopeika
Local shops
Located in residential areas.
Mainly food, open 24/24.

Kvartal, Pyaterochka
Located on main thoroughfares and also near metro stations or markets and shopping malls.
Each stall is specialized in one type of product: drinks, underwear, CDs and DVDs, jewelery, icons, fruit and vegetables, tobacco, etc.
The products sold are generally poor quality and low price.

Open air markets
These are usually regulated places where individuals can rent a stand. Food markets are relatively small and there are a lot of them.
Other markets, especially for stereo systems, electric appliances, etc. are fewer in number.

Gorbushka, Savelioskaya,Izmailovskyi, VDNKh à Moscou

Evolution of the Retail Sector

Growth and Regulation
In 2006, the Russian market represented 200 billion USD according to the Federal State Statistics Service and has grown by about 13% per year over the last few years. Nevertheless, according to several research bureaux, the market could in fact easily be higher than 300 billion USD and have grown by 30 to 40% per year in reality.
Whereas distribution systems were practically inexistent at the fall of the USSR, the almost total privatization and liberalization of the sector have led to a rapid market transformation. Supermarket chains began to develop in the 1990s and the present structure integrates the components of the western model.
Market Shares
An essential part of distribution is still carried out by means of stalls and markets. They represent more than half of sales, with 20% for open air markets. Being able to use these channels is often the key to success in Russia.
As regards chains, the market is dominated by supermarkets which represent more than half of sales.
Hypermarkets have appeared recently (opening of the first Auchan in 2002), and are already reaching 10% of total turnover; they have strong potential. They target a relatively well-off clientele.
The share of discount stores is also about 20%, but the market seems to be more saturated.
Finally, local shops represent from 10% to 15% of chain sales.
Organizations in the Retail Sector
Sector-based alert
Russian Chamber of Commerce and Industry

Any Comments About This Content? Report It to Us.

Read more See less
Experts Views (1)
Post your content


Post content about Distribution Networks in Russia and you will be listed here to receive requests for offers.