Russian Retail to be Slow

The Russian market has been poor for the last couple of years, but analyst, PMR, which specialises in Eastern Europe, has estimated that the value of retail sales (excluding motor vehicles and fuels) will grow 7.1% this year to 19.4 trillion rubles ($304 billion). That is slower growth than in recent years, but still very positive given the current economic crisis (low oil prices and sanctions because of Crimea/Ukraine). The company estimates consumer electronics at 6.3% of this, so 1.22 trillion rubles ($19 billion). Electronics was one of the segments that suffered this year.

Retail in Russia

In virtually all segments of the Russian retail market two distribution channels have the best growth perspectives: retail chains and e-commerce. The former is mainly driven by organic expansion of the largest players in each segment, for example M.Video, Technosila in consumer electronics. In the case of online sales, a growing number of internet stores as well as growing delivery ranges have a positive influence on the channel’s growth. The increasing popularity of e-shopping plays a major role, as well.