The Russian grocery retail market is huge, untapped and ripe for consolidation, delegates at the SSSB annual food retailing conference were told.
Former Somerfield home shopping boss David Noble, now a supervisory board director at St Petersburg based supermarket Pyaterochka, said a variety of factors had made Russia more appealing, such as longer leases on commercial property, lower taxes and calmer inflation.
In less than three years since its formation, Pyaterochka has taken a leading position with turnover of $450m. But this was a drop in the ocean in an $89bn grocery market, said Noble.
Outdoor markets are being closed down and the retail sector will develop rapidly over the next three to five years as a result, said fellow director Victor Beliakov. "Metro, Spar, Edeka and Auchan are already here; Casino is looking and Wal-Mart sent a delegation over last year."
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Former Somerfield home shopping boss David Noble, now a supervisory board director at St Petersburg based supermarket Pyaterochka, said a variety of factors had made Russia more appealing, such as longer leases on commercial property, lower taxes and calmer inflation.
In less than three years since its formation, Pyaterochka has taken a leading position with turnover of $450m. But this was a drop in the ocean in an $89bn grocery market, said Noble.
Outdoor markets are being closed down and the retail sector will develop rapidly over the next three to five years as a result, said fellow director Victor Beliakov. "Metro, Spar, Edeka and Auchan are already here; Casino is looking and Wal-Mart sent a delegation over last year."
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