Sixty-one percent of Russian respondents named food as the most promising sector, while foreigners (50%) preferred construction materials.
Photo: Yury Martyanov
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Groceries Show Retail Promise
A survey by the Ernst & Young company of retail chains has shown the following sectors to be the most promising: “food goods” (57% of respondents consider this sector promising), “construction materials and goods for remodeling (55%), “clothing” (47%), “shoes” (33%). Sixty-one percent of Russian respondents named food as the most promising sector, while foreigners (50%) preferred construction materials.
The respondents expect an average growth rate in the retail sector of 30 percent on the next five years. In foreign companies, they were more reserved in their forecasts, with an average of 23 percent, compared to 31 percent in Russian companies. Those rates are significantly more optimistic than those found in mid-2007 by the Economist Intelligence Unit. That survey predicted a slowdown in the growth of the sector from 27.4 percent in 2007 to 19,9 percent in 2008, 16.4 percent in 2009 and 14.7 percent in 2010.
The vast majority of respondents, regardless of what segment they work in, expect competition between Russian and foreign companies to increase in the near future. Complications with logistics was named as their main problem by 100 percent of foreign respondents and 49 percent of Russian respondents. The lack of high-quality trading space was named by 50 percent of the foreigners and 85 percent of the Russians. Russian and foreign retailers show significantly different business strategies as well.
www.kommersant.com
All the Article in Russian as of Apr. 03, 2008
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