Discover the latest market trends and uncover sources of future market growth for the Retailing industry in Ukraine with research from Euromonitor’s team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
The Retailing in Ukraine market research report includes:
Analysis of key supply-side and demand trends
Detailed segmentation of international and local products
Historic number of stores, selling space and values, company and brand market shares
Five year forecasts of market trends and market growth
Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
How big is the grocery/non-grocery/non-store channel in Ukraine?
Who are the leading retailers in Ukraine?
How is retailing performing in Ukraine?
What is the retailing environment like in Ukraine?
Which channels are winning or losing in the fight for consumers’ money?
Why buy this report?
Gain competitive intelligence about market leaders
Track key industry trends, opportunities and threats
Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Retailing market research database.
Sample Analysis
Ukraine Retail Market
Published: February 2012
Price: Single User License US$ 1900
Table of Contents
Retailing in Ukraine – Industry Overview
EXECUTIVE SUMMARY
Retailing in Ukraine has yet to realise its full potential
Chained operators gain popularity among consumers
Grocery retailers prove more resilient to the economic crisis
Independents dominate a highly fragmented competitive landscape in Ukraine
The pace of economic recovery will determine the performance of retailing
KEY TRENDS AND DEVELOPMENTS
Economic recovery is driving retailing
Internet retailing penetrates further in Ukraine
The government adds to the pressure on small businesses
Private label attracts low-income consumers
Demographic trends reduce the consumer base in Ukraine
Modern chained retailers are increasingly competitive
MARKET INDICATORS
Table 1 Employment in Retailing 2006-2011
MARKET DATA
Table 2 Sales in Retailing by Category: Value 2006-2011
Table 3 Sales in Retailing by Category: % Value Growth 2006-2011
Table 4 Sales in Retailing by Grocery vs Non-Grocery 2006-2011
Table 5 Sales in Store-Based Retailing by Category: Value 2006-2011
Table 6 Sales in Store-Based Retailing by Category: % Value Growth 2006-2011
Table 7 Sales in Non-Grocery Retailers by Category: Value 2006-2011
Table 8 Sales in Non-Grocery Retailers by Category: % Value Growth 2006-2011
Table 9 Sales in Non-store Retailing by Category: Value 2006-2011
Table 10 Sales in Non-store Retailing by Category: % Value Growth 2006-2011
Table 11 Retailing Company Shares: % Value 2007-2011
Table 12 Retailing Brand Shares: % Value 2008-2011
Table 13 Store-Based Retailing Company Shares: % Value 2007-2011
Table 14 Store-Based Retailing Brand Shares: % Value 2008-2011
Table 15 Non-Grocery Retailers Company Shares: % Value 2007-2011
Table 16 Non-Grocery Retailers Brand Shares: % Value 2008-2011
Table 17 Non-store Retailing Company Shares: % Value 2007-2011
Table 18 Non-store Retailing Brand Shares: % Value 2008-2011
Table 19 Forecast Sales in Retailing by Category: Value 2011-2016
Table 20 Forecast Sales in Retailing by Category: % Value Growth 2011-2016
Table 21 Forecast Sales in Store-Based Retailing by Category: Value 2011-2016
Table 22 Forecast Sales in Store-Based Retailing by Category: % Value Growth 2011-2016
Table 23 Forecast Sales in Non-Grocery Retailers by Category: Value 2011-2016
Table 24 Forecast Sales in Non-Grocery Retailers by Category: % Value Growth 2011-2016
Table 25 Forecast Sales in Non-store Retailing by Category: Value 2011-2016
Table 26 Forecast Sales in Non-store Retailing by Category: % Value Growth 2011-2016
APPENDIX
Operating environment
Cash-and-carry
Table 27 Cash-and-Carry: Sales Value 2006-2011
Table 28 Cash-and-Carry: Sales by National Brand Owner: Sales Value 2008-2011
Table 29 Cash-and-Carry: Number of Outlets by National Brand Owner: 2008-2011
DEFINITIONS
Summary 1 Research Sources
Retailing in Ukraine – Company Profiles
ATB-Market TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 4 ATB-Market TOV: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 5 ATB-Market TOV: Competitive Position 2011
Auchan Hypermarket Ukraine TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 8 Auchan Hypermarket Ukraine TOV: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 9 Auchan Hypermarket Ukraine TOV: Competitive Position 2011
Avon Cosmetics (Ukraine) DP in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 12 Avon Cosmetics (Ukraine) DP: Competitive Position 2011
Billa-Ukraina PII in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 15 Billa-Ukraina PII: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 16 Billa-Ukraina PII: Competitive Position 2011
DC Ukraine TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 19 DC Ukraine TOV: Competitive Position 2011
Eldorado Torgova Kompaniya TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 22 Eldorado Torgova Companiya TOV: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 23 Eldorado Torgova Companiya TOV: Competitive Position 2011
Foxtrot Group in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
Table 30 Foxtrot Group: Share of Sales Generated by Internet Retailing
COMPANY BACKGROUND
PRIVATE LABEL
Summary 26 Foxtrot Group: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 27 Foxtrot Group: Competitive Position 2011
Fozzy ZAT in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 30 Fozzy ZAT: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 31 Fozzy ZAT: Competitive Position 2011
Furshet ZAT in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 34 Furshet ZAT: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 35 Furshet ZAT: Competitive Position 2011
Spar-Ukraine TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 38 Spar-Ukraine TOV: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 39 Spar-Ukraine TOV: Competitive Position 2011
Tavriya-V TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 42 Tavriya-V TOV: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 43 Tavriya-V TOV: Competitive Position 2011
X5 Retail Group Ukraine ZAT in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
Summary 46 X5 Retail Group Ukraine ZAT: Private Label Portfolio
COMPETITIVE POSITIONING
Summary 47 X5 Retail Group Ukraine ZAT: Competitive Position 2011
ZARA Ukraina TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 50 ZARA Ukraina TOV: Competitive Position 2011
Zroby Sam Ukraina TOV in Retailing (Ukraine)
STRATEGIC DIRECTION
KEY FACTS
INTERNET STRATEGY
COMPANY BACKGROUND
PRIVATE LABEL
COMPETITIVE POSITIONING
Summary 53 Zroby Sam Ukraina TOV: Competitive Position 2011
Apparel Specialist Retailers in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, consumer confidence was slowly improving in Ukraine as fears of a deep economic recession in the country were not realised. Thus, consumers started to shop more, and apparel was one of the favoured items among Ukrainians, especially women concerned about their appearance. In apparel specialist retailers, current value sales increased by 7% in 2011 to reach UAH39.3 billion.
CHANNEL FORMATS
Chart 1 Apparel Specialist Retailers: Zara in Kiev
CHANNEL DATA
Table 31 Apparel Specialist Retailers: Value Sales, Outlets and Selling Space 2006-2011
Table 32 Apparel Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 33 Apparel Specialist Retailers Company Shares by Value 2007-2011
Table 34 Apparel Specialist Retailers Brand Shares by Value 2008-2011
Table 35 Apparel Specialist Retailers Brand Shares by Outlets 2008-2011
Table 36 Apparel Specialist Retailers Brand Shares by Selling Space 2008-2011
Table 37 Apparel Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 38 Apparel Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Direct Selling in Ukraine – Category Analysis
HEADLINES
TRENDS
Whilst consumer purchasing power did not increase significantly in 2011, Ukrainians were more willing to spend on products, as the effects of the global financial crisis ebbed. However, consumers were more cautious when choosing products, prioritising quality as a means of saving in the long run. Direct selling was viewed as an alternative channel offering good quality products at comparatively affordable prices, thanks to absence of retailer mark-ups. This was how direct sellers positioned their offer. People were interested in “natural” home care products by Amway, and Oriflame’s natural cosmetics produced in Sweden. In 2011, direct selling recorded an 11% increase in current value sales to reach UAH7.2 billion.
COMPETITIVE LANDSCAPE
Oriflame Cosmetics Ukraine is the leading player with a 28% share of retail value sales in 2011. The company specialises in cosmetics and toiletries, offering a wide assortment of good quality products at competitive prices. The positioning of Oriflame as a provider of natural Swedish cosmetics is popular with Ukrainian consumers. Besides, it benefits from the first mover advantage, although its share fell by four percentage points in 2011 due to strong competition from the second-ranked player, Amway Ukraine, in particular.
PROSPECTS
Over the forecast period, direct selling is expected to be a growth area in Ukraine. Constant value sales are projected to increase by 23%. However, this is slower than the 34% increase in constant value sales over the review period, due largely to approaching saturation. Besides, qualitative improvements in more traditional retail channels, created by the ongoing expansion of chained operators, especially in the long run, will weaken consumer interest in direct selling.
CHANNEL INDICATORS
Table 39 Direct Selling Agents 2004-2010
CHANNEL DATA
Table 40 Direct Selling by Category: Value 2006-2011
Table 41 Direct Selling by Category: % Value Growth 2006-2011
Table 42 Direct Selling Company Shares by Value 2007-2011
Table 43 Direct Selling Brand Shares by Value 2008-2011
Table 44 Direct Selling Forecasts by Category: Value 2011-2016
Table 45 Direct Selling Forecasts by Category: % Value Growth 2011-2016
DIY, Home Improvement and Garden Centres in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, large DIY, home improvement and garden centres attracted most customers due to their exceptionally wide assortments and affordable pricing, which are not available from small outlets. While the number of outlets grew by 4%, current value sales rose by 14%. More consumers, especially ones making home repairs or building houses, purchased goods in hypermarket format stores such as Epicenter, Novaya Liniya and Agromat Svit Keramiki. These stores allowed consumers to economise.
CHANNEL FORMATS
Chart 2 DIY, Home Improvement and Garden Centres: Altsest in Kiev
CHANNEL DATA
Table 46 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space 2006-2011
Table 47 DIY, Home Improvement and Garden Centres: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 48 DIY, Home Improvement and Garden Centres Company Shares by Value 2007-2011
Table 49 DIY, Home Improvement and Garden Centres Brand Shares by Value 2008-2011
Table 50 DIY, Home Improvement and Garden Centres Brand Shares by Outlets 2008-2011
Table 51 DIY, Home Improvement and Garden Centres Brand Shares by Selling Space 2008-2011
Table 52 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 53 DIY, Home Improvement and Garden Centres Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Electronics and Appliance Specialist Retailers in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, electronics and appliance specialist retailers experienced greater pressure from internet retailers, which expanded their nationwide delivery of products while offering lower prices. To lessen the impact of this competition, electronics and appliance specialist retailers, especially chained operators, practiced “brick and click” retailing. The service was introduced by the majority of chains, including Foxtrot, Eldorado and ALLO. Consumers could access information on assortments and prices via company websites as well as visit stores to “touch” products. The development of “brick and click” retailing allowed companies to expand their target consumer bases.
CHANNEL FORMATS
Chart 3 Electronics and Appliance Specialist Retailers: Comfy in Kiev
Chart 4 Electronics and Appliance Specialist Retailers: Eldorado in Kiev
Chart 5 Electronics and Appliance Specialist Retailers: Foxtrot in Kiev
CHANNEL DATA
Table 54 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space 2006-2011
Table 55 Electronics and Appliance Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 56 Electronics and Appliance Specialist Retailers Company Shares by Value 2007-2011
Table 57 Electronics and Appliance Specialist Retailers Brand Shares by Value 2008-2011
Table 58 Electronics and Appliance Specialist Retailers Brand Shares by Outlets 2008-2011
Table 59 Electronics and Appliance Specialist Retailers Brand Shares by Selling Space 2008-2011
Table 60 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 61 Electronics and Appliance Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Furniture and Furnishings Stores in Ukraine – Category Analysis
HEADLINES
TRENDS
Furniture and furnishings stores did not benefit significantly from the improvement in consumer confidence in 2011. Since furniture is often a major purchase item, consumers continued to economise in this area. Ukrainians did not start buying furniture more actively, and the 16% increase in current value sales by in 2011 was due to unit prices growth. Import taxes were increased in 2011, and in Q1 2011 importers were forced to raise furniture prices. Local companies did not want to lag behind and they were tempted by the opportunity to increase profits with higher mark-ups. Domestic players also import furnishing materials, which contributed to price increases. In 2011, sales of furniture and furnishings stores reached UAH7.6 billion.
CHANNEL FORMATS
Chart 6 Furniture and Furnishings Stores: Elegant in Kyiv
CHANNEL DATA
Table 62 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space 2006-2011
Table 63 Furniture and Furnishings Stores: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 64 Furniture and Furnishings Stores Company Shares by Value 2007-2011
Table 65 Furniture and Furnishings Stores Brand Shares by Value 2008-2011
Table 66 Furniture and Furnishings Stores Brand Shares by Outlets 2008-2011
Table 67 Furniture and Furnishings Stores Brand Shares by Selling Space 2008-2011
Table 68 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 69 Furniture and Furnishings Stores Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Grocery Retailers in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, grocery retailers recorded a 9% increase in current value sales to reach UAH200.5 billion. The format is the most common in the country, comprising both modern and traditional outlets. The continued growth of consumer expenditure saw sales rise.
TRADITIONAL VS MODERN
CHANNEL FORMATS
Chart 7 Modern Grocery Retailers: ATB in Kiev
Chart 8 Modern Grocery Retailers: Billa in Kiev
Chart 9 Modern Grocery Retailers: Billa in Kiev
Chart 10 Modern Grocery Retailers: Furshet in Uman
Chart 11 Modern Grocery Retailers: Perekriostok in Kiev
COMPETITIVE LANDSCAPE
In 2011, grocery retailers was highly fragmented, with the top five players accounting for only a 20% share of retail value sales. Fozzy ZAT maintained its leading position with an 8% share of retail value sales. The company runs the Silpo, Fozzy and Fora chains, which reach a wide consumer base.
PROSPECTS
In the medium-to-long term, grocery retailers is expected to witness further growth in outlets, mainly through chained modern retailers. Regional coverage will increasingly be viewed by chained players, including supermarkets and forecourt retailers, as a way to expand business. Hypermarkets is also set to grow in terms of outlets as it is a less saturated channel, even though large cities will be the primary target. Independent forecourt retailers and “other” grocery retailers will be the most vulnerable as they feel the growing pressure from chained operators, in both modern and traditional formats.
CHANNEL DATA
Table 70 Sales in Grocery Retailers by Category: Value 2006-2011
Table 71 Sales in Grocery Retailers by Category: % Value Growth 2006-2011
Table 72 Grocery Retailers Company Shares: % Value 2007-2011
Table 73 Grocery Retailers Brand Shares: % Value 2008-2011
Table 74 Forecast Sales in Grocery Retailers by Category: Value 2011-2016
Table 75 Forecast Sales in Grocery Retailers by Category: % Value Growth 2011-2016
Health and Beauty Specialist Retailers in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, chemists/pharmacies accounted for a 69% share of retail value sales in health and beauty specialist retailers. The rise in prices of medicines in such outlets (5% in 6-months in 2011) and the general growth in consumer expenditure on healthcare contributed to strong overall current value sales growth of 9% in 2011. However, in 2011 healthcare retailers were still under the close control of the state – the Anti-Monopoly Committee advised local manufacturers and distributors of medicines to keep down prices in autumn 2011. Additionally, the government expressed concern about internet sales of medicines, and they are considering a ban on such activity. This factor also reduces the profitability of healthcare retailers.
COMPETITIVE LANDSCAPE
In 2011, the competitive landscape was highly fragmented, with “others” holding a 65% share of retail value sales. Chained operators were the most competitive, occupying the leading positions. DC Ukraine is the leading player with a 7% share of retail value sales. The company is successful through Watsons, which sells cosmetics and toiletries as well as pharmaceuticals. Watsons stores were rebranded from DC in 2011; as decided by Watson Group AS, part of Hutchison Whampoa Ltd, which bought a 65% share in DC in 2006.
PROSPECTS
Health and beauty specialist retailers’ forecast performance is dependent on the pace of the country’s recovery from the economic crisis. Traditionally, local consumers are very keen to look and feel good and they are constantly looking for products that facilitate this desire. Low consumer spending power is, however, a key factor in the consumer demand for health and beauty products in Ukraine. Since the Ukrainian economy is expected to remain comparatively healthy in the forecast period, a good demand for such products will translate into positive sales dynamics in this channel. Over the forecast period, health and beauty specialist retailers is predicted to grow by 22% in constant value sales terms to reach UAH35.6 billion in 2016. The expected confident growth compared to only 3% increase recorded over the review period is due to increasing popularity of beauty specialist retailers and parapharmacies/drugstores. Chemist/pharmacies are also expected to contribute to growth of the whole channel in the forecast, as since 2012 internet sales of consumer healthcare were banned that will bring more consumers to stores.
CHANNEL FORMATS
Chart 12 Health and Beauty Specialist Retailers: Cosmo in Kiev
Chart 13 Health and Beauty Specialist Retailers: Watsons in Kiev
Chart 14 Health and Beauty Specialist Retailers: Apteka TAS in Kiev
CHANNEL DATA
Table 76 Health and Beauty Retailers: Value Sales, Outlets and Selling Space 2006-2011
Table 77 Health and Beauty Retailers: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 78 Health and Beauty Retailers Company Shares by Value 2007-2011
Table 79 Health and Beauty Retailers Brand Shares by Value 2008-2011
Table 80 Health and Beauty Retailers Brand Shares by Outlets 2008-2011
Table 81 Health and Beauty Retailers Brand Shares by Selling Space 2008-2011
Table 82 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 83 Health and Beauty Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Homeshopping in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, homeshopping, which attracted a growing number of Ukrainians, recorded a 15% increase in current value sales. In actual terms, sales were not so impressive, reaching UAH1.1 billion. Mail order catalogues dominated TV shopping, which targets the upper-end of the market with products that are not affordable to the average consumer.
COMPETITIVE LANDSCAPE
The competitive landscape remains highly fragmented, with “others” accounting for an 85% share of retail value sales in 2011. Studio MA, which entered Ukraine in 2004, leads with a 5% share of retail value sales. The company registered the biggest share increase of one percentage point in 2011. Studio MA promotes its goods on TV. This enabled it to reach to a wider consumer base, one which was willing to spend more on products in 2011, in line with the general rise in consumer expenditure in Ukraine. Moreover, the company offers 24-hour consultancy services and discounts to customers.
PROSPECTS
Over the forecast period, homeshopping is anticipated to be an important growth channel in Ukraine, with constant value sales expected to grow by 35%. The channel is set to continue to expand its consumer base, which was still narrow in 2011. Hitherto negligible formats should have good opportunities to emerge in the short term.
CHANNEL DATA
Table 84 Homeshopping by Category: Value 2006-2011
Table 85 Homeshopping by Category: % Value Growth 2006-2011
Table 86 Homeshopping Company Shares by Value 2007-2011
Table 87 Homeshopping Brand Shares by Value 2008-2011
Table 88 Homeshopping Forecasts by Category: Value 2011-2016
Table 89 Homeshopping Forecasts by Category: % Value Growth 2011-2016
Internet Retailing in Ukraine – Category Analysis
HEADLINES
TRENDS
Internet penetration has deepened in Ukraine. According to a survey by InMind, conducted for the Internet Association of Ukraine, there were over 14 million internet users by the end of Q3 2011. The largest share of internet users (49%) was in big cities (over 100,000 inhabitants), while villages accounted for the lowest share (20%). Internet quality is also improving as slow dial-up is eventually being substituted by faster options, including broadband (eg Voliacable, Ogo!).According to Business magazine, the number of broadband users reached three and a half million in 2010, with a further increase of 30% expected in 2011.
COMPETITIVE LANDSCAPE
Internet retailing is highly fragmented, with thousands of active operators. “Others” accounted for an 84% share of retail value sales in 2011. However, a few players managed to gain significant shares and positions in internet retailing in Ukraine. Rozetka leads with a 5% share of retail value sales in 2011. The company is highly competitive due to its wide assortment of products, including the super-premium Zepter range, and competitive pricing. These factors have helped Rozetka to gain the trust of consumers. In line with the development of internet retailing, Rozetka’s share has fallen during the review period, although there was some improvement in 2010-2011. In actual sales terms, the player is benefiting from the development of the channel, recording outstanding retail value growth.
PROSPECTS
Internet retailing has good prospects in Ukraine, given the vast space for further internet penetration and the lower prices on offer in the channel. Over the forecast period, constant value sales are expected to rise by 45% to reach UAH9.2 billion in 2016. However, the dynamic growth rates recorded in the review period are unlikely to be replicated as the novelty of internet retailing weakens. Moreover, many Ukrainians will continue to prefer to shop in traditional retail stores as they appreciate the opportunity to ask the advice of shop assistants and to examine products.
CHANNEL DATA
Table 90 Internet Retailing by Category: Value 2006-2011
Table 91 Internet Retailing by Category: % Value Growth 2006-2011
Table 92 Internet Retailing Company Shares by Value 2007-2011
Table 93 Internet Retailing Brand Shares by Value 2008-2011
Table 94 Internet Retailing Forecasts by Category: Value 2011-2016
Table 95 Internet Retailing Forecasts by Category: % Value Growth 2011-2016
Leisure and Personal Goods Specialist Retailers in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, signs of stability in the local currency and economy stimulated consumer spend. Leisure and personal goods are considered prime necessity products, although a rise in demand was observed. In 2011, the channel registered a 6% increase in retail value sales to reach UAH13.5 billion. This continued the recovery from the decrease in sales due to the economic crisis in 2009.
CHANNEL DATA
Table 96 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space 2006-2011
Table 97 Leisure and Personal Goods Specialist Retailers: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 98 Leisure and Personal Goods Specialist Retailers Company Shares by Value 2007-2011
Table 99 Leisure and Personal Goods Specialist Retailers Brand Shares by Value 2008-2011
Table 100 Leisure and Personal Goods Specialist Retailers Brand Shares by Outlets 2008-2011
Table 101 Leisure and Personal Goods Specialist Retailers Brand Shares by Selling Space 2008-2011
Table 102 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 103 Leisure and Personal Goods Specialist Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Mixed Retailers in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, mixed retailers was one of the least developed retailing channels in Ukraine. The number of stores barely exceeded 100 and the majority of formats remained negligible or undeveloped. Retail value sales were not very impressive, reaching UAH1.5 billion.
COMPETITIVE LANDSCAPE
Mixed retailers is a highly fragmented category comprised of independent operators. There were no discernible leaders in terms of retail value sales in 2011. The location of mixed retailers is a highly important competitive factor, as a good site can bring a high flow of customer traffic. As most mixed retailers were created in Soviet times, they are often located in central parts of cities and towns.
PROSPECTS
Over the forecast period, mixed retailers is expected to grow by 4% CAGR in constant value sales, compared to a 8% CAGR decrease over the review period. More optimistic forecast is determined by the expected gradual recovery after economic slowdown of 2009. Whilst consumer spending power will be quite restricted throughout the short-term period, the major boost to sales will be derived from the further good growth in the number of outlets and selling space.
CHANNEL FORMATS
Chart 15 Mixed Retailers: 4Room in Kiev
CHANNEL DATA
Table 104 Mixed Retailers: Value Sales, Outlets and Selling Space 2006-2011
Table 105 Mixed Retailers: Value Sales, Outlets and Selling Space: % Growth 2006-2011
Table 106 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space 2011-2016
Table 107 Mixed Retailers Forecasts: Value Sales, Outlets and Selling Space: % Growth 2011-2016
Vending in Ukraine – Category Analysis
HEADLINES
TRENDS
In 2011, coffee remained by far the most popular drink consumed via vending machines in Ukraine. The location of coffee machines in trade and entertainment centres, high streets and other places with high consumer turnover allowed Ukrainians to consume coffee on the go. Besides, coffee sold via vending machines is more affordable than coffee sold in consumer foodservice outlets, which explains the high popularity of this vending format.
COMPETITIVE LANDSCAPE
At the end of the review period, the competitive landscape was characterised by growing fragmentation. New players entering vending, independents in particular, are eroding Nestlé-Ukraine’s retail value share. A pioneer in vending in the country, Nestlé-Ukraine remains the leading player. However, its retail value share fell by 33 percentage points over the review period to reach 45% in 2011. Nestlé-Ukraine is the only chained operator of note.
PROSPECTS
Over the forecast period, vending sales are expected to grow by 64% in constant value terms to reach UAH323 million in 2016. The channel’s potential is big in Ukraine, considering the very low penetration rate of vending machines. However, the potential to reach similar levels to Western markets is restricted by a number of factors.
CHANNEL DATA
Table 108 Vending by Category: Value 2006-2011
Table 109 Vending by Category: % Value Growth 2006-2011
Table 110 Vending Company Shares by Value 2007-2011
Table 111 Vending Brand Shares by Value 2008-2011
Table 112 Vending Forecasts by Category: Value 2011-2016
Table 113 Vending Forecasts by Category: % Value Growth 2011-2016
