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Russia: Diversification Promises Added Growth

Russia : Diversification Promises Added Growth
Photo: LZ Retailytics
Top Russian grocers extend their lead by diversifying into new formats.
Retailers in Russia will need to look for new growth channels, as evidence shows that the rise of small-format discounters is beginning to slow. Challenges include revenue cannibalisation and rising costs due to logistical challenges in new territories. As a result, we will see formats with higher space productivity increase in importance, such as liquor stores, drugstores and supermarkets.

As they diversify into new growth channels, the top four retail players in Russia are set to expand their share of revenue among the Top 20 players from 67.5% in 2014 to more than 74.3% in 2020. Each of them is staking their claim in different market segments.

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Topics: Krasnoe&Beloe Magnit Lenta X5 Retail Group Dixy Group