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The end of Russian retail boom

Consumer’s demand changes while debt financing appreciating and problems with getting loans from bank have become the mains factors that have been influencing on Russian retailers during financial crisis. This is the one of a few conclusions from «Retail’s 2009 Overview» made by Ernst&Young.

The most of all from crisis suffered retailers that invested a lot in building and real estate and small retailers. But the results of Overview show that a lot of existing on market retailers feel pretty well and even show improving of financial results as revenue and gross margin. More that 60% respondents says they have a grow of revenue in rubles, 29% managed to have increased a profitability concurrently with grow of revenue.

The prospects assessments for Russian retail market still not clear mostly but 87% respondents believe that situation in Russian retail will not become worse.

The Overview also shows that the most part of Russian retailers have been changing theirs regional expansion strategy – they want to develop theirs business in Moscow region and only a few biggest Russian cities mostly.

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