10 Russian retail trends

Alexey Gorshkov
G2 Russia

The Russian retail sector is evolving from a patchwork of Soviet-era formats to modern chains with double-digit sales growth, says Alexey Gorshkov of G2 Russia

The Russian retail scene is a patchwork of different formats. There are some surviving Soviet-type formats, government owned outlets that provide for basic needs at an affordable price, making up 2% share of retail turnover.

There are also remnants from the chaotic post-Soviet period of open markets, kiosks and street stalls selling virtually everything from basic food to luxury goods without any clear focus. The quality is often dubious, but the price and range of choices is wide. Open markets, the hypermarkets of the 1990s, have lost their importance, having only 10% share (cf. 26% share in 2000) and their function is now limited to fresh food. At the same time, an independent sector of separate kiosks and shops owned by individual entrepreneurs and small enterprises still have 50% share of overall turnover.