In 2021 in Russia there were more than 800 thousand retail outlets selling fast-moving consumer goods, including 300 thousand “modern retail” outlets (minimarkets, supermarkets and hypermarkets).
Major retail chains account for significant part of modern retail business. Large retail chains are growing rapidly, using their scale to obtain maximum efficiency in procurement, logistics, assortment management and promotion.
X5 Retail Group
X5 group is the largest food retailer in Russia with market share above 12% and revenue above 2.2 trillion rubles. 82% of X5 revenue is generated by 17.7 thousand Pyaterochka discounters and 17% by nine hundred Perekrestok supermarkets.
Average selling space is around 1,000 square meters for Perekrestok and 400 square meters for Pyaterochka.
In addition to core Pyaterochka and Perekrestok businesses, the group makes strong emphasis on development of hard discounters (Chizhik brand). It is planned that in 2022 number of Chizhik stores will increase from 100 to 500 outlets.
In addition to traditional brick-and-mortar stores, X5 is actively developing online grocery and meal delivery businesses.
Magnit PJSC
Magnit PJSC is the second largest retailer in Russia with 11.5% market share in food retail, turnover 1.8 trillion rubles, 360 thousand employees, 58 million customer card holders and 27 thousand retail stores in 2021.
72% of the revenue is generated by 16 thousand Magnit convenience stores with average selling area around 300 square meters and about 5 thousand SKUs per store.
12% of the revenue is generated by larger formats – 470 Magnit supermarkets and hypermarkets with average selling area 2,000 square meters and 15,000 SKUs per store.
8% of the revenue is made by 7,000 specialized non-food Magnit Cosmetics drugstores with average selling area 200 square meters and 15,000 SKUs per store.
On top of that, Magnit is currently digesting 2,500 Diksi stores acquired in 2021 and actively developing Moya Tsena hard discounters as well as on-line business.
Mercury Retail Group
Mercury Retail Group is the third largest retailer in Russia with market share 5.9% and about 16 thousand retail outlets in “ultra convenience” format. Average selling area is 80 square meters with approximately 15 hundred SKUs in assortment.
The two main retail brands are Krasnoe-i-Beloe (13,500 stores) and Bristol (2,500 stores). Both concentrate heavily on alcohol assortment (offering best prices in the category), and represent rapidly growing “alcomarkets” format. Alcohol and beer is supplemented with tobacco, snacks and limited food assortment.
The group is closely associated with Megapolis Trading Company, the largest FMCG distributor in Russia. Megapolis delivers goods to 160,000 retail stores, employs 15,000 people and owns 3,300 truck fleet. Megapolis holds huge exclusive distribution contracts like JTI, Philip Morris, Imperial Tobacco, Baltika, Bic and a few other blue chip FMCG companies.