We help retail & consumer companies to accurately assess their business potential, overcome barriers to success and find new opportunities.
The Russian economy is recovering, with major macroeconomic indicators showing modest growth However consumers remain conscious of prices and conservative about the future.
The crisis of 2014–2016 led to a reduction in overall expenses, including for food and fast-moving products, and frugality has become the primary spending model.
Despite recent signs of recovery, the sales dynamic for food retailers’ LFL is negative in comparison to the rate of inflation
Retailers are focusing on increasing their capabilities by cooperating, developing new areas of activity and e-commerce channels, adopting technologies and expanding across Russia.
In the first half of 2018 Russian GDP is growing slower comparing to the same period in the previous year.
Despite low official inflation and continuous real wages growth consumers do not feel positive changes in their financial situation. They continue cutting their spend. Strong trend for buying less and cheaper products is remaining determinant in Russian consumers behavior.
Highly competitive market demands an efficient approach for marketing and promo as well as for cost optimization and operational excellence.
Increased inflation and slowdown in real wage growth in the third quarter had a negative impact on consumers’ estimation of their financial situation, which strengthened the trend to buy cheaper goods and reduce purchases.
As a consequence, overall retail turnover has been growing slower than inflation in the third quarter.
Current market conditions put pressure on LfL sales. Key grocery retailers still achieve higher revenue growth due to the opening of new stores.
Partner, Retail & Consumer Leader
Tel: +7 (495) 967 6029
Marketing and Business Development, Retail & Consumer
Tel: +7 (495) 967 6186