Doing business in St. Petersburg

According to the A.T.Kearney 2009 Global Retail Development Index, Russia comes in second only after India as one of the most attractive countries for development of the retail sector, having risen by one position compared to the ranking of 2008. Retail turnover in terms of volume grew by 14% in 2006, by 16% in 2007 and by 13% in 2008.

A.T.Kearney 2009 Global Retail Development: Russia comes in second 

Source: A.T.Kearney | The 2009 Global Retail Development Index

The trade sector is rapidly developing in Russia, especially in St. Petersburg, and growth is not limited solely with the food sector. A.T.Kearney forecasts that retails sales are expected to grow at a compound annual growth rate of 15% over the next five years.

St. Petersburg can be considered one of the most fast-moving regions of Russia in terms of retail growth. The sector forms approximately 24% of St. Petersburg GRP. In 2009 there were 15,6 thousand retail trade outlets active in the city. Retail turnover increased by 5% (comparable prices) and equaled 614 760 bln. RUB.

Number of retail trade outlets in St. Petersburg in 2004-2009

Source: Government of St. Petersburg, Committee for economic development, industrial policy and trade

Turnover of retail trade in St. Petersburg in 2000-2009 (billion RUB)

Source: Government of St. Petersburg, Committee for economic development, industrial policy and trade

In recent years, the interest of investors and retail operators has shifted from Moscow, which is saturated, to St. Petersburg and other cities. At the moment practically all major trade formats are present in the market.

Distribution of modern formats in Russian food retail

 *incl. cash and carry

Source: Discovery Research Group

A significant number of international operators are already present on the market and many others have started or intend starting their operations in the near future. The potential of the Russian market is estimated to be twice its current size, providing global companies with a chance of enormous success and growth. The following foreign companies are actively operating in St. Petersburg:

• Cash & Carry
  • Metro
• Construction materials
  • Castorama
  • Obi
  • Stroymaster - K-Rauta
    
• Electronics
  • Media Markt
    
• Food retailers
  • Auchan
  • Prisma
  • Real
    
• Furniture
  • Ikea
    
• Sport goods
  • Intersport