NEWS

Feb/1420

Metro Group’s Russian division of Cash & Carry has its IPO set for April

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German retailer Metro Group is to float its Russian division of Metro Cash & Carry in the middle of April, according to
Reuters. The company is planning to raise at least €1bn as a result of the IPO on the London Stock Exchange (LSE).
The estimated value of the company is between €4bn and €7.5bn.
Metro entered Russia in 2000, opening its first cash and carry hypermarket in 2001. InfoLine analysts estimate that
the sales figure for Metro Cash & Carry Russia in financial 2013 was €4.12bn.
Overall, there are 72 Metro cash and carry stores in about 50 Russian cities.

Source: PMR 

Feb/1411

Russian grocery retailer Lenta’s sales increased 31% in 2013; IPO in plans

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Lenta, one of the major Russian grocery retailers, increased its total sales by 31.3% year on year to RUB 144.3bn (€3.03bn) in 2013, according to the company’s IFRS financial report. At the same time, the Like For Like sales grew by 10%.
In addition there was a 35% increase in the retail space of the Russian hypermarket retailer Lenta in 2013, and the company has become the most rapidly growing business in this arena among the largest grocery retailers in Russia.

At the end of last year Lenta’s retail space came to 508,000 m2 and the company had 87 stores in total. The retailer has opened 31 stores, including 10 supermarkets in Moscow and the Moscow Province. It operates 77 hypermarkets in 45 cities in Russia.
Lenta’s main shareholders are the American investment fund TPG (49.8%), the EBRD (21.5%) and VTB Capital (11.7%). In early February the retailer announced that it intended to enter the London Stock Exchange and the Moscow Exchange by means of IPOs.

Source: PMR

Jan/1430

Magnit to enter Tomsk Province through M&A activity

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Magnit, the leading Russian grocery retailer, is planning to enter Tomsk in 2014 by acquiring a local retail network, according to the local authorities, quoted by Retailer.ru. However, the source has not named the company to be acquired. It is known, however, that Magnit has already started staff recruitment for its proposed Tomsk stores.
In addition, the company intends to open three Magnit stores in Strezhevoy (in the Tomsk Province). The first establishments are due to open in the spring of 2014.
The company was operating 8,093 stores at the end of 2013. These included 7,407 grocery stores in Russia and 686 cosmetics stores (the Magnit Kosmetik brand).

Source: Retail Russia

Jan/1422

Russian retail market continue to see slow down in growth rates (2013)

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Operational data for January-November 2013 from Russia’s State Statistics Service (Rosstat) show that the Russian retail market has continued to see a slow down in its growth rates. This corresponds to the overall trend in the country’s economy.

In particular, in the first 11 months of the previous year the real growth in retail sales turnover in Russia increased by 3.9% against 6.5% in January-November 2012. In addition, December, which is traditionally the best month for retailers, does not seem to have brought any improvement.

Although Rosstat has not yet published the data for the last month of 2013, an inference can be drawn from the results of the largest and most aggressive Russian grocery retailer – Magnit. In its operational results for 2013 the company reported that December 2013 was the month when sales grew at a noticeably lower rate than the average for the year. If the growth rate for the whole year amounted to 29.2% year on year, in December it was at 22.9%. Magnit has put the weaker growth down to the reduced shopping activity of Russians in general. Another large retailer, Eldorado which trades in consumer electronics, pointed out at the fact that customers have less disposable financial resources.

What is more, research by the Uniteller processing company shows that the situation is no better for the online sector of the retail market. In fact, the December sales level in some product groups was reported to be more or less the same, or even worse than in December 2012. The research reveals that the average bill for clothing purchases in online stores amounted to RUB 9,224 (€203) in December 2013, against RUB 9,190 (€202) a year earlier. Once inflation is taken into consideration (CPI increased by 6.5% during 2013), it it is clear that there has been a fall in sales.

Source: PMR

Jan/1409

4.5% increase in Russian retail market in November 2013

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In November 2013 the real annual increase in retail sales turnover in Russia rose to 4.5% from the October figure of
3.6%, according to the Russian State Statistics Service. For comparison, in November 2012 there
was a 5% increase. In terms of value, the Russian retail market was thought to be worth RUB 2,013bn (€45bn) in
November, a 10.6% year-on-year increase.
The proportion accounted for by food products, including beverages and tobacco, was 47.1%, and that accounted for
by non-food goods – 52.9%, as opposed to 46.5% and 53.5% at the corresponding period in 2012.
In addition, the cumulative data for the first 11 months of the year showed that retail sales turnover in Russia
increased by 3.9% year on year in real terms, in comparison with 6.5% at the corresponding point of last year. The
market was estimated by Rosstat to be worth RUB 21,149bn (€472.7bn) – a 10.7% year-on-year increase.

Source: Retail Russia

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