Retail trade in Russia shows modest but steady growth

In Q1 2010 retail trade in Russia underwent modest but steady growth, rising by 1.3% year on year in terms of volume. In March alone, it rose by 7.9% compared to February 2010, and by 2.9% against March 2009. However, there was a slight drop in retail trade in the Northwestern and Siberian federal districts.

In the first quarter of 2010 a rise in retail trade, in terms of volume, was observed in 59 federal subjects of Russia including the city of Moscow. The most significant growth, in percentage terms, was reported in the Republic of Chechnya (45.4%) and the Chukotka Autonomous District (33.7%). High increases were also observed in the Republic of Adygeya, the Republic of Dagesten, and the Sakhalin, Rostov, Leningrad provinces, all of which reported growth ranging from 8.7% to 12.3%.

For the same period, 24 federal subjects in the country, including the city of St. Petersburg, reported a decrease in the volume of retail trade turnover. The largest year-on-year drops were reported in the Perm Territory as well as in the Irkutsk, Vologda and Yaroslavl provinces. The decline in these administrative districts ranged from 4.6% to 8.6%.

In the Central Federal District, the volume of retail trade turnover in Q1 2010 rose by 1.8% year on year. The increase recorded in the city of Moscow alone was 2.2% year on year, while the increase from February 2010 to March 2010 was 5.4%. A year-on-year decline of between 1.9% and 4.5% was registered in three of the district’s provinces in Q1 2010 – Bryansk, Ivanovo and Yaroslavl. The remaining provinces reported growth of between 0.2% (Kaluga Province) and 8.5% (Smolensk Province).
In value terms, retail turnover in the Central Federal District totalled RUB 1,252.8bn. As usual, the Moscow Province and Moscow city boasted the highest turnovers, with RUB 226.5bn and RUB 652.3bn, respectively. Aside from this, turnovers of RUB 43.6bn, reported in the Voronezh Province and RUB 32.4bn, reported in the Tula Province, are also worthy of note.

The Southern Federal District recorded a 5.8% year-on-year increase in the volume of retail trade turnover in Q1 2010. In value terms, turnover amounted to RUB 316.6bn. The highest growth was reported in the Republic of Adygeya (12.3%), followed by the Rostov Province (10.4%). The only administrative area in the district to register a decline was the Volgograd Province (0.6%).

The North Caucasian Federal District reported the highest year-on-year percentage increase in terms of volume of retail trade turnover of all the Russian federal districts – 7.6%. The district’s total turnover for this period amounted to RUB 152.2bn. The highest year-on-year growth, in percentage terms, in the district and the whole of the country was in the Republic of Chechnya (45.4%). Within the district, the Republic of Dagestan recorded the highest value trade turnover – of RUB 55bn – while, in volume terms, a year-on-year growth of 11.2% was recorded.

The Volga Federal District recorded a 1.6% year-on-year increase in the volume of retail turnover. In value terms, retail turnover generated in the federal district amounted to RUB 635bn. The highest year-on-year increases in volume terms were registered in the Republic of Mordovia (9.4%) and the Republic of Udmurtia (8%). The largest drop – that of 8.6% – was observed in the Perm Territory.

A slight increase in the volume of retail trade turnover – 0.4% – was recorded in the Urals Federal District. In value terms, the turnover was RUB 367.9bn. The majority of the administrative areas in the district, including the Chelyabinsk and Tyumen provinces, saw a decline in volume of between 3.4% and 4.7%.

In the Far Eastern Federal District, an increase of 5.0% in the volume of retail trade turnover was recorded. In value terms, the figure amounted to RUB 143bn. Within the federal district, the Chukotka Autonomous District registered the highest percentage increase – 33.7% – although it did have the lowest retail turnover in the whole country, RUB 1.4bn. The Kamchatka Territory was the only administrative area in the whole of the federal district to have recorded a drop in Q1 as it saw the volume of retail trade turnover fall by 3.4%.

The Northwestern Federal District was one of two federal districts to record a year-on-year decline in the volume of retail trade turnover in Q1 2010. Here a 1.0% decrease was observed, with the turnover value amounting to RUB 353.4bn. A decline in volume was observed in six administrative areas of the district including the Republic of Karelia, Republic of Komi, the provinces of Kaliningrad, Murmansk and Vologda and the city of St. Petersburg. The largest decline was reported in the Vologda Province (6.9%), whereas the smallest was registered in the Kaliningrad province (0.5%). A 2.9% drop was recorded in St. Petersburg. In March 2010, however, in comparison with the previous month, the city of St. Petersburg registered a 7.9% growth.

The second federal district in Russia, with a drop in the volume of retail trade turnover in Q1 2010, was the Siberian Federal District, where a year-on-year decline of 0.9% was recorded. In value terms, turnover amounted to RUB 387bn. The highest decline in volume terms, that of 7.6%, was recorded in the Irkutsk Province. This was followed by the Kemerovo (3.5%) and Novosibirsk (2%) provinces, the Republic of Altay (-1%) and the Omsk Province (-0.4%). Elsewhere in the Siberian Federal District, increases of between 1.6% and 8.7% were observed.