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

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

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>