SPAR International Extends Russian Partnerships
News: Netherlands-based grocery retailer SPAR International has issued two new operating licences to retail companies in the Russian market, reports Kam C ity. The licences have been granted to Anix , which operates within the Altay Republic, and to Semya Group , which serves the Kaliningrad region. With the award of these licences , SPAR International now has 13 partners across Russia, accounting for over 300 retail outlets. Additionally, the company has confirmed that it is in advanced negotiations with other interested parties over the formation of more new retail partnerships in Russia.
BMI View: Russia's mass grocery retail industry has grown at a phenomenal pace over the past few years and has established itself as one of the world's most promising. Its leading retailers are some of the fastest growing in the world, with Magnit and X5's five-year annual sales growth averaging well in excess of 40%, which compares very well with even the fastest growing emerging-market based major retailers. Strong organic and non-organic growth by these key players as well as multinationals such as Auchan has brought dynamism to a Russian retail market that remains extremely fragmented. To 2017, the discount segment is expected to be the strongest grower, posting a five-year CAGR of 36.9% in local currency terms. It is widely established in Russia and is expected to play a pivotal role in the transition from independent to organised retail over the next decade. Supermarket and hypermarket sales are also expected to continue growing strongly over the period.