With European stores looking empty, commercial real estate investors have turned to Russia where shoppers are still out in force.
After splashing out more than $1bn to buy a mall in Saint Petersburg last year, Morgan Stanley has returned to the Russian market to buy an even more expensive retail outlet in Moscow. Continue reading »
Coming soon: sportswear for dogs
X5, the Russian food retailer controlled by Mikhail Fridman’s Alfa Group, has won a tender for rights to market official merchandise for the 2014 Sochi Winter Games.
The prestigious deal may boost the appeal of X5’s grocery stores but probably comes too late to prevent the London-listed retailer from being overtaken by its fast growing rival Magnit in the battle for sales. Continue reading »
Most businessmen would be glad to be compared to Sam Walton, the US retail visionary who founded Walmart. Not Sergei Galitsky, the billionaire chairman and chief executive of Magnit, the Russian grocery chain. He thinks the flattery goes too far.
For a start, Magnit, although Russia’s biggest food retailer by stores and growing at breakneck speed, will never match Walmart in scope or size, he says. And Galitsky has no plans to follow the US multinational’s example and take his company global. Continue reading »
Bad news for Russia. In a new study by management consulting group, AT Kearney, Russia has fallen behind BRIC and other emerging market peers in terms of the countries’ attractiveness for investments in the retail sector.
On a list of 30 emerging markets, Russia ranks 26, down from 14th place a year ago. Brazil, China and India, by contrast, all rank in the top-5, placing first, third and fifth, respectively. So what is holding Russia back? Continue reading »
One of the founders of X5, Russia’s top food retailer, has decided to leave his job after disappointing results and warnings that the days of dizzy sales growth are over.
X5, which has built a network of more than 3,000 food stores from scratch since 1998, like any highly successful start-up, has become just too big to continue growing so fast. But the slowdown is worrying investors who have seen X5 as one of the few non-resource companies in Russia worth putting their money in. Continue reading »