Retail market in Russia to grow by almost 10% in 2010 - November 2010

The growth rate of the Russian retail sector dropped severely last year due to worsening economic conditions, weakening purchasing power growth and the depreciating rouble. As a result, the retail market’s value increased by only 5% in 2009 after several years of roughly 25% annual growth. Nevertheless, the situation has improved this year, and the retail market is expected to once again reach double-digit growth rates in subsequent years.

According to our estimates, the Russian retail market was valued at RUB 14.6tr ($461bn) in 2009, an increase of 5% compared to the previous year. The severe drop in the growth rate – down from about 25% growth annually between 2004-2008 – was negatively affected by the sharply decreasing GDP, which fell 7.9% in 2009, the declining growth rate of disposable incomes, rising unemployment and worsening consumer confidence.