Russian consumers spending mirrors that of 98-99

2009-03-10



Russian consumers are spending most of their income on staple foodstuffs. According to the Romir research agency, in January 2009 purchases of groceries and staple goods accounted for 76% of real disposable income, a similar proportion to that recorded in 1998-1999. Analysts from the Renaissance Capital survey on the purchase of staple goods, predict that discounters, hypermarkets and Russian producers of staple goods are benefiting from such harsh market conditions.
In January 2008 Russian consumers were spending 61% of their income on food. By January 2009 this had risen to 76%, a higher proportion than in Thailand, India, Ukraine and Belarus. To provide a point of comparison, the percentage of real disposal income spent on food rarely exceeds 20% in most developed countries.
Grocery retailers are likely to benefit from the recession, especially discount retail chains and retailers offering private-label or own-brand goods. Dixy has confirmed that its earnings in January 2009, in comparison to January last year, had risen by 25%. The retailer has also noted a shift in consumer preference towards value products and items with a longer sell-by date.