Moscow Supermarket Industry On a Fast Tract

With just 7% of Russia’s population, Moscow accounts for about 30% of national retail turnover. The average salary in Moscow is 21/2 times higher than the average Russian salary. The middle class is rapidly emerging, and in Moscow and St. Petersburg they represent about 20-25% In most western countries this figure is somewhere around 60 to 70%

By segment, according to the Moscow Trade Ministry, supermarkets account for 20-25% of retail turnover in the city, open air markets about 20% and traditional small shops the rest. The share of supermarkets continues to expand rapidly with planned store construction in Moscow and the surrounding area.

The leading food retailers in Moscow are, Perektrestok, Kopeyka, Disksi, Auchan, a French retailer Spar, a Dutch retailer Metro, a German retailer, Seventh Continent, and Ramstore, a Turkish retailer with more studying the market for store locations. To date there has been no evidence of US supermarkets planning to enter Moscow.

Everything about the new supermarkets is state of the art with beautiful shopping malls developed around the supermarkets that offer literally anything you could want or find in similar European supermarkets.

In 2001, the Moscow government approved its general plan of the location of large shopping areas. Plans are to build 300 shopping centers in the city in the next 20 years. It is a market poised for growth and with a growing consumer base to support them.

By FreshPlaza columnist Al Vangelos, Novelle Consulting

(Al Vangelos of Novelle has been working on a produce distribution project in Russia, about 70 kilometers north on Moscow supplying this fast growing market with vegetables. They have developed the first real consumer brand for produce in Russia, Treasure of the Sun, which is in distribution in the Moscow market.)