Russia’s Long-Term Retail Opportunity

Russia has some real challenges right now – price inflation and the impact of the growing global financial crisis.  Still, long-term retail prospects look promising, according to Retail Forward. The market research firm forecasts Russia’s retail market to surpass $900 billion by 2012, more than doubling the market size in 2007.

“The double-digit pace of growth in Russia’s retail sales in recent years is forecast to moderate but remain strong in the coming years,” says Frank Badillo, Retail Forward’s senior economist, manager of the its Global Retailing Program, and co-author of Russia’s Retail Landscape. “Russia’s long-term growth prospects should continue to draw foreign retailers and suppliers to the country.”

Even with the near-term retail outlook threatened, the research firm forecasts that Russia will become the fifth-largest retail market in the world by 2012 (it’s currently eighth) and surpass Italy, France, and Germany as it climbs to that spot.

* Forecast assumes constant currency exchange rate.
** Total Sales includes Clothing/Footwear, Home Furnishings & Equipment, Food, and Miscellaneous categories but excludes Autos.
Source: National statistics sources and TNS Retail Forward.