What’s happening with retail in Caucasus

What’s happening with retail in Caucasus

There’s been significant growth in the retail sector in Belorussia


There are some 4,000 stores of different formats in Tbilisi, the capital of Georgia. Modern retail is not more than 30% of total trade. The share of supermarkets does not exceed 5% of the market, and the growth of their share is not expected in the near future.

The situation is similar in Armenia though in Azerbaijan the supermarket share is greater – 10%. One of the youngest retailers of Azerbaijan is resco; it is an affordable brand with high quality products for demanding consumers. Fresco is part of the Azeri Retail company which appeared on the market in 2010.

In January–November 2014, Azerbaijan imported 12,800 t of fruit at a value of $9 million, down 31% on 2013.

But fresh vegetable imports grew 26% (22,600 tons at $2.4 million) and potato imports – which totalled 110,000 t with a value of $8 million – were 2.5 times higher than in 2013, according to the Interfax.az agency.


Consolidation of formats by Belarusian retailers

There’s been significant growth in the retail sector in Belorussia – more than 18% in 2013 (on 2012) and 10% in the first half of 2014.

Though lately the growth has been slowing due to a general business decline, analysts are optimistic about the long-term prognosis of retail growth in Belorussia because the procurement of trade space is still quite insufficient – it is 1.5-2 times less than the EU average. Moreover, the shortage of some formats is so great that consumers from small towns have to shop in the country’s capital, Minsk.
The main trends in Belarusian retail sector at the moment are the consolidation of formats and the optimisation of trade processes.

X5 Group’s turnover higher

In the last quarter of 2014, the retailer X5 Group opened two new distribution centres: one of 34,000 m2 in the Rostov region (south of Russia) and another of 44,000 m2 close to Nizhniy Novgorod (Volga region).

Its turnover grew in 2014 thanks to inflation, new outlets and an assortment upgrade, especially in discount formats.

However some stores were also closed: 46 Pyaterochka discounters, 22 Perekrestok supermarkets, 45 Express supermarkets and 2 Karusel hypermarkets.

Magnit conquers Siberia

This year, Magnit, the largest Russian retailer, will open a new logistics and distribution centre near Krasnoyarsk. The retailer has bought 50 ha for this purpose. Additionally, new stores, both supermarkets and hypermarkets, will open in the region.

O’Key opens a new storehouse

The retailer O’Key is improving its logistics efficiency in Siberia and has rented a storehouse in Novosibirsk.

Until now, its merchandise distribution was done through four centres: in St. Petersburg, Moscow, Krasnoyarsk, Volgograd. Thus, the expansion of all the federal retailers to Russian regions continues.