by Eugene Vorotnikov FoodBizDaily.com Moscow
January 25 2010 - Many of the leading Russian retailers this year are planning to start expansion of the domestic discounter segment due to its successful growth rates in 2009, according to Russian media reports.
X5 Retail Group, Russia’s largest retailer, this year is going to open 200-250 discounters, 15 supermarkets and only 7 hypermarkets, spending about 9 billion rubles ($270 mln.), while the total amount of investments in the company’s further expansion in the Russian market may exceed 18 billion rubles.
Magnit another Russian grocery chain this year is ready to invest up to $1 billion in the opening of 450-550 discounters and 25-30 hypermarkets, while "Dixy" is going to spend about 3 billion rubles for the opening of its low-cost stores.
The fact that the supermarket format last year was the most sensitive to a decrease in consumer activity based on the results of "Seventh Continent". In March 2009 the company began aggressively cutting prices, however its revenue still grew less compared to competitors - +11% the first nine months of 2009. The company’s sales for the same period increased by 4,3%.