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Real launches city centre format in Russia

Mon, 06 Feb 2012 17:13:02 +0300

Metro Group-owned hypermarket chain Real has launched a new small-box format called urban supermarket in Russia, according to domestic magazine Retail. The first store is located in Shchelkovo, near Moscow, in the Shchelkovo shopping centre and has a sales area of 6,000 square metres (65,000 square feet). The product range consists of 30,000 SKUs including food and non-food items. Investment in the outlet was EUR13.5 million (USD18.8 million).

Planet Retail

X5 Retail Group plans to revamp Karusel hypermarkets

Mon, 06 Feb 2012 17:04:38 +0300

Russian grocery retailer X5 Retail Group plans to reorganise and expand its store portfolio. The company is looking to introduce a new concept for its Karusel hypermarkets in 2013 and develop a Kopeika neighbourhood store chain. The new Karusel format will be based on better optimisation of the product assortment. X5 CEO Andrey Gusev said: “X5 may start opening neighbourhood stores under the brand Kopeika. X5 is developing neighbourhood stores with sales areas of 100-200 square metres under the Perekrestok-Express, Citimag and Pyaterochka Mini. We might maintain these brands and use the Kopeika brand parallel with them.” It is important to note that X5 introduced its e-commerce banner E5 at the beginning of this year.

Planet Retail

Svyaznoy to boost revenue with new technologies

Mon, 06 Feb 2012 16:27:44 +0300

Russian mobile phone retailer Svyaznoy plans to increase sales by 30% to RUB91.6 billion (USD2.9 billion) in 2012, RBC reports. According to the company's President Maxim Nogotkov, the ambitious target is due to growing demand for smartphones and electronics products, such as tablet PCs and e-readers.

Planet Retail

Svyaznoy online sales boosted by consumer electronics

Thu, 02 Feb 2012 14:07:53 +0300

Russian mobile phone retailer Svyaznoy has reported that net sales for its online store surged 133% to RUB3.5 billion (USD111.8 million) in 2011, RBCDaily reports. Mobile phone and smartphone sales grew 20% and accounted for 45% of all sales. Laptops and notebooks was the highest growth category, posting sales of RUB1 billion (USD31.9 million) compared to RUB147 million (USD4.7 million) in the prior year. Sales of accessories improved almost seven-fold to RUB162 million (USD5.2 million) while camera sales increased to RUB479 million (USD15.3 million). Some 73% of all transactions were in the regions of the country.

The number of visitors to the site rose 71.4% in 2011 with the highest activity recorded in December during the New Year period. According to Svyaznoy, the rapid growth of its online sales is due to expanding the product range away from mobile phones into electronics, such as laptops, netbooks and cameras.

Planet Retail

Eldorado audit reveals violations

Tue, 24 Jan 2012 13:50:00 +0300

Rospotrebnadzor, Russia’s Federal Service of customers’ rights protection and human well-being surveillance, has initiated 13 administrative cases against domestic retailer Eldorado. An inspection in six stores has revealed a number of violations, such as missing or misleading price tags, lack of product information in Russian as well as lack of special marking for second-hand goods. The audit also exposed goods past their expiry dates, such as washing powders and other detergents.

Planet Retail

M.video online sales grow 90% in 2011

Fri, 20 Jan 2012 10:42:54 +0300

Russian electronics retailer M.video has posted a 29.7% rise in net sales to RUB112 billion (USD4.2 billion) including VAT, for the full year ended December 2011. In the fourth quarter, net sales increased 28% to RUB44.9 billion (USD1.4 billion) including VAT while online sales grew by more than 90% compared to fiscal 2010. During the fiscal year the company opened 44 new outlets, 18 of which in Q4, and closed two, resulting in a total of 261 outlets with a combined sales area of 39,000 square metres.

Alexander Tynkovan, M.video President and CEO, commented: "We strengthened our market leadership while improving customers relationship and brand recognition, especially in the highly-competitive internet channel. We are looking forward to 2012 with optimism and plan to open 25-35 new supermarkets during the year”.

Planet Retail

McDonald�s Russia faces lawsuit from consumer watchdog

Thu, 19 Jan 2012 09:19:42 +0300

Fast food chain McDonald’s in Russia is facing a lawsuit from The Consumer Rights Protection Society, asking it to disclose the ingredients it uses, according to local press. The association ran an investigation into the operator and says it is misleading consumers by not providing necessary nutritional information. It was claimed, for example, that McDonald’s milkshakes should not be classified as such because they contain excessive amounts of fat. The watchdog also highlighted that McDonald’s is already in a privileged position after an arbitration court ruled that it be classified as a food retailer rather than a restaurant, allowing it to pay lower taxes.

Planet Retail

Euroset converts Alfa Bank loan into local currency

Thu, 19 Jan 2012 09:16:44 +0300

Russian mobile phone specialist Euroset has converted 70% of its debt to Alfa Bank from US dollars into Russian roubles. The retailer has also repaid part of its RUB3.9 billion (USD124.6 million) loan to the bank. The move is in line with Euroset’s financial strategy to diversify currency risks. Dmitry Milstein, Euroset Chief Financial Officer, said: "We see significant risk in the liquidity crisis on the banking market expected in Russia in mid-2012. Therefore, we took action to reduce the level of our business dependence on bank loans."

Planet Retail

M.video implements Predictix merchandising applications

Tue, 17 Jan 2012 13:45:35 +0300

Russian electronics retailer M.video has adopted Predictix Assortment Planning, Store-Level Forecasting and Target Stock Optimisation, MarketWatch reports. The Predictix applications have already been installed within several merchandise categories with the full roll-out scheduled for completion by summer 2012. M.video hopes the new tools will enable it to make better decisions across all business processes and enable more accurate forecasting, planning and replenishment, as well as improving service levels and reducing overstocks.

Planet Retail

Beers and wines could disappear from shelves in Russia

Wed, 11 Jan 2012 10:54:31 +0300

After long winter holidays Russians may have to go “cold turkey”. There is expected to be a shortage of low-alcoholic drinks as the Government has so far failed to give its approval to new regulations for excise stamps.

�Almost all domestic beers and some popular imported wine such as Italian Lambrusco and German Liebfraumilch with strength less than 9% are considered low-alcoholic. From January 1, 2012 production and import of low-alcoholic drinks without tax labels will be banned. The ban may force many beer producers to stop the production and to halt imports.

It could lead to shortages, experts say as retailers allowed to sell alcohol would be unable to renew stock. As for retailers, they will be banned from selling low-alcohol drinks without tax labels from the beginning of 2013. Up until now now tax labels were required only for spirits.

Drink producers say the government decree was months ago and tax labels have been already printed. However, even if the decree is approved before holiday, it will take about a month for companies to receive all the necessary paperwork. Until the decree has been given its assent firms are not allowed to purchase the machines to stick the labels on bottles.

However, the Russian Government has promised to give the nod before the end of the year, and the Russian Alcohol Market regulator pledged to deal with alcohol producers promptly.

Russians splash out on New Year presents

Wed, 11 Jan 2012 10:50:47 +0300

To save or not to save on holiday gifts? Of course not, say Russians as they increase holiday spending by about 30% in spite of crisis.

About 95% Russian are going to give presents to their family, friends and colleagues. The majority of respondents to a poll commissioned by accountants Deloitte are ready to spend about $300 for holiday presents comparing to $200 last year.

Most Russians are going to make their friends and relatives happy by giving them cosmetics or perfume (63%), sweets and chocolate (48%) or money (44%). Other popular presents include drinks and food, kitchen gadgets, spa, massage and event tickets.

Gift certificates and vouchers are not among the most desired presents: only 26% of people want to get them. About 50% of Russians last year received gift certificates, but only 33% have already used them.

Meanwhile most Russians would like to receive money (56%), a travel package (45%) or a computer (42%). School students from 7 to 15 years from Moscow and St. Petersburg are desperate for money (22%), an iPad (23%) or iPhone (21%) under the Christmas tree. Only one in ten teenagers wants to get a bicycle as a gift.

But parents are going to give children under 12 years toys (47%), among them toys for creative work and puzzles. As for teens from 12 to 18, Santa Claus should bring them videogames (22%), puzzles (14%) and electronic toys (12%).

Half of Russians will buy presents in shops, only about 12 % are going to purchase them online.

Smart phone sales drives electronic retail up

Wed, 11 Jan 2012 10:45:31 +0300

During the third quarter of 2011 Russian consumers spent 96 billion roubles on electronic goods which have increased retailer revenues by 21% year on year with smart phone sales up 72%.

Telecom Daily attributed growth to a significant increase of revenues from sales of mobile computers (laptops & net books) as well as boom of sales of smart phones. “Over 10.5 millionmobile phones were sold in the 3Q2011,whichis 8.9% higher than in the 3Q2010. In money terms the market rose by 9.8% to 45.5billion roubles.”

According to mobile retailer Svyaznoy, smart phone sales provide the biggest contribution to mobile phone sector sales.

“The sales of smart phones jumped by 72% year on year in the 3Q 2011 with almost 2 million phones sold. In money terms the market grew by 55% year on year and reached almost 22 billion roubles which is a 49% of total mobile phone sales. While sales of traditional GSM cell phones fell by 3% which is a net cut of 24% in money terms”.

Revenue dynamic from sales

“Over the 9 months of 2011 almost 5 million smart phones have been sold for almost 53 billion roubles in total. Thus the sales of smart phones for the 9 months of 2011 doubled in number of units sold and were 71% up in money terms.”

Smart phones are squeezing out traditional GSM cell phones not only in quality advantages but also in cost and variety. Telecom Daily says Nokia remain the leading position in the low cost segment, with most popular models costing between 3000 to 5000 roubles.

Smart phones have become 10% cheaper in Russia with the average retail price around 10,600 roubles.

The Russian market of smart phones continues to grow strongly. Russia's share in global sales also increased.

India opens retail sector to foreign brands

Wed, 11 Jan 2012 10:34:00 +0300

India's government has allowed foreign brands such as Adidas or home furnishings giant Ikea to open 100-percent owned shops, but will continue to block the entry of supermarkets.

The retail reform allowing wholly foreign-owned "single brand stores" into India was announced late Tuesday by the left-leaning government, which had initially announced sweeping plans to throw open the sector.

In December, it said it planned to allow in foreign supermarket chains such as Wal-Mart, but it backtracked two weeks later amid parliamentary opposition and protests from small shopkeepers.

Major Western brands such as Adidas already own shops in the booming retail centres and shopping malls of India's major cities, but they are currently obliged to operate with a local partner.

"Foreign direct investment (FDI) up to 100 per cent, under the government approval route, would be permitted in single brand product retail trading," the Department of Industrial Policy and Promotion (DIPP) said late Tuesday.

The condition is that the foreign companies owning more than 51 percent of their shops in India source a minimum of 30 percent of their products from small-scale local "cottage industry" suppliers.

"The move will not only mean more FDI but lead to employment and also lead to more choices for consumers," the secretary general of business lobby group FICCI, Rajiv Kumar, said in a statement.

"The sourcing clause will lead to a direct benefit for the SME (small and medium-sized enterprises) sector," he added.

The change to the foreign direct investment rule does not require parliamentary approval. The government U-turn on allowing in supermarkets was forced after an ally in the ruling coalition threatened to quit over the move.

AFP

Retail.ru � �������

Real launches city centre format in Russia

X5 Retail Group plans to revamp Karusel hypermarkets

Svyaznoy to boost revenue with new technologies

Svyaznoy online sales boosted by consumer electronics

Eldorado audit reveals violations

M.video online sales grow 90% in 2011

McDonald�s Russia faces lawsuit from consumer watchdog

Euroset converts Alfa Bank loan into local currency

M.video implements Predictix merchandising applications

Beers and wines could disappear from shelves in Russia

Russians splash out on New Year presents

Smart phone sales drives electronic retail up

India opens retail sector to foreign brands

Retail.ru � ��