Ukrainian Retail Market Is Expanding About 20% Per Year
In 2011 the Ukrainian retail market, which increased by almost 27% year on year, was worth UAH 571bn ($72bn). PMR estimates that the market will continue to increase further from 2012 onwards. The growth rates are, however, expected to be lower than those of 2010-2011.
According to the latest PMR report, “Retail in Ukraine 2013. Market analysis and development forecasts for 2013-2014”, the Ukrainian retail trade market grew in value to UAH 571bn ($72bn) in 2011, a year-on-year increase of approximately 27%. In comparison with the precedent year, the market continued to rebound in 2011, and may possibly even have accelerated in terms of growth. It was strongly supported by the recovery of the Ukrainian economy, an improvement in consumer sentiment, a reduction in inflation, a 6.1% increase in real disposable income and an increase in the popularity of modern retail store formats. According to PMR estimates, the retail market will maintain its rate of growth of around 20% per annum to UAH 973bn ($122bn) in 2014. Real disposable income and low inflation will remain among the key drivers of growth.
Fozzy Group keeps its leading position
The Fozzy Group remains the largest retail market player in Ukraine in terms of revenue. It is a diversified retailer, with a presence in groceries, consumer electronics and pharmacy retail. In 2011, it had a 3.4% retail market share. ATB-market is the second most prominent company, with a 2.6% market share the same year. Over the last few years, the company has significantly increased its market presence, supported by a substantial increase in demand among Ukrainians for discounter store formats. It is currently the largest retail sales chain in Ukraine in terms of store count.
EpiCentr K, the DIY retailer, was the third most prominent company in 2011, accounting for about 2.1% of the retail market. Its sales revenue came to UAH 12bn ($1.5bn). It was followed by the Foxtrot Group, a consumer electronics concern.
Of the 10 largest retailers in Ukraine, only three are non-food concerns: two are consumer electronics companies (Foxtrot and Comfy), and one is a DIY chain(Epicentr K).
The top 10 players accounted for more than 14% of the market and had more than 1,800 stores in 2011. According to our estimates, their market share could rise to almost 16% in 2012, and the number of stores could exceed 2,000. Among the leading 10 companies only two are foreign and these, the Metro Group and the Auchan Group, are grocery concerns.