Springtime in Russian retail. Major trends and consumer insights

We hope that our conclusions will provide companies and investors with a deep understanding of the current market conjuncture in order to properly assess their capabilities and risks in Russia.

The Russian economy is recovering, although major macroeconomic indicators show modest growth

The Russian economy is recovering, although major macroeconomic indicators show modest growth. However, consumers remain conscious of prices and conservative about the future. Despite GDP growth and historically low inflation in Russia in 2017, consumers do not expect the economy to improve. However, on a positive note, a growing number of people believe the economy will remain stable.

● 23%

respondents believe that the economy will be better that this year

● 45%

respondents believe the economy will remain stable

Although some consumers are planning to increase spending, a large segment is likely to remain frugal

Our survey shows that some consumers are planning to increase spending over the next 12 months, although a large segment is likely to remain frugal.

Buying during promotions and in cheaper formats is still part of consumers’ behavior, putting pressure on retailers’ margins.

● 23%

respondents are ready to spend more on shopping

 

Buying during promotions and in cheaper formats is still part of consumers’ behaviour, putting pressure on retailers’ margins. Because of this, hypermarkets are losing a greater share compared to convenience stores.

  • Retailers are to continue their marketing and promotional activities to compete for customers.
  • Operating efficiency and cost optimisation strategies will remain some of the most important tactics for increasing margins.

Contact us

Martijn Peeters

Partner, Retail & Consumer Leader

Tel: +7 (495) 967 6029

Yulia Kuznetsova

Marketing and Business Development, Retail & Consumer

Tel: +7 (495) 967 6186

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