By Khristina Narizhnaya
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At the end of 2010, there were 7,439 big retail
chain outlets countrywide. |
The supermarket was all abuzz, with long lines at the checkout counter and more shoppers filing in — a normal scene in an emerging market — but it was after 11 p.m.
"We need more big, quality supermarkets," said Oleg Silchenko, 29, who shops at Karousel, a hypermarket chain owned by the X5 Retail Group, near his home in northwestern Moscow. He usually has to wait in a long line, especially in supermarkets with good prices and selection.
As the country emerges from the recession, the dynamic energy of the food retail business can be felt around the clock, as more and more outlets open, while food prices continue to rise.
On top of that, Russians spend roughly 30 percent of their disposable income on food because of low wages and standard of living as well as the instability of the ruble, said Maxim Klyagin, an analyst with the investment holding Finam. Americans spend less than 10 percent.
With a total turnover in 2010 of 7.1 trillion rubles ($239 billion), the retail food market is growing at 13 percent — more than twice the rate of the economy as a whole — and leading retailers are seeing growth of 30 to 40 percent.