Wal-Mart almost came to Russia

The largest network of retailers Wal-Mart goes to the Russian market. Analysts believe that Russia Wal-Mart will not apear before 2009: it arrived late for a separate release, but to buy Russian retailer still early. In addition, the authorities are forcing vendors to freeze prices.

About Wal-Mart outlet in the Russian retail market for the company said CEO Lee Scott. However, he did not name the specific timing of the work in Russia and not reported as the world's largest network of retailers will win the rapidly growing Russian market.

Wal-Mart plans to absorb the Russian market became known after reporting companies for the third quarter of 2007. Lee Scott noted that the U.S. retail market becomes saturated and its growth has slowed markedly.

Already in 2006, overseas offices Wal-Mart ahead of indicators offices in the United States. In 2006, 22% of total sales ($ 345 billion) went to foreign affiliates.

Out in Russia in line with the global strategy for the company. Wal-Mart plans to continue to invest heavily in the development retail in other countries. On the development of new markets, the company will require additional spending. Already this year, Wal-Mart will increase to $ 1 billion cost of international business: they amount to $ 4.5 billion compared with $ 3.5 billion in 2006. The following year, retailer will raise investment to $ 4.8 - $ 5.3 billion, and in 2009, spends from $ 5.3 billion to $ 5.8 billion in overseas expansion.

Now Wal-Mart is already present in 14 countries, including the United States (Argentina, Brazil, Honduras, Mexico, Canada, China, Costa Rico, El Salvador, Guatemala, Nicaragua, Puerto Rico, Japan and Britain). In August 2007, the company reported that it had agreed with India's Bharti Enterprises to establish a joint venture between Bharti Wal-Mart Private Ltd. The first store network Wal-Mart will open in India in 2008.

As experts note, Wal-Mart is going to go long on the Russian market, and this is cause for some scepticism.

While the world's largest retailer talks about his plans, his competitors operate much more.

"For example, Carrefour, - talks analyst" Antanta-Capital Andrew Verholantsev - plans to open its first hypermarket in the first quarter of 2008 in the west of Moscow.

In general, if Wal-Mart finally released to the Russian market, it could be profitable. "The Russian market is saturated and not enough on its own tanks could take another player," - said Verholantsev. Business will be successful if the company will choose the right region, said the analyst: "For example, Down Novgorod, Samara, Novosibirsk, in general, the city-million".

These regions have not yet been saturated, while the share of organized trade is 20%, and the remaining 80% - this market and tents.

But wait, that the world's largest retail network in Russia will soon not be. For appearance in Russia of foreign retailer is not a good time. "Essentially went commercial real estate niche online retailers already are Russian companies," - said analyst URALSIB "Andrei Nikitin. Thus, Wal-Mart missed with a separate output in Russia.

Start same activities through the purchase of Russian retailer too soon, said Nikitin: "The market is fragmented, and there is no obvious leader." "Even when buying X5 Retail Group, one of Russia's largest market players, Wal-Mart does not provide a decent market share - in the X5 accounting for only about 2% of retailers", - said Nikitin. Therefore, most likely, the American retailer wait until 2009, when possible, identify the leader, and then Wal-Mart buys it suggests analyst.

The Russian company's network may reach a substantial percentage of retail sales, but only in the very distant future. Overall, the proportion of netter in retail trade is unlikely to grow dramatically in the near future. "To expect change in the situation the next 10 years is not worth" - confirms Andrew Verholantsev.

Nevertheless, over time, Russian retailers could face displacement by the major networks.

In this connection, you can remember that, in addition to the scope of its activities, Wal-Mart is known around the world, and even as an object of attack for public organizations: in particular, WakeUp Wal-Mart and Wal-Mart Watch accused the world's largest retailer that it displaces more Small vendors from the market and to oppose unions. According to analyst URALSIB "Andrei Nikitin, the same situation again, and Russia -" they replace small retailer from the market. " It added that in Russia there is currently no similar public organizations, which could support the smaller retailer.

But the largest retailer may face yet another challenge. As previously wrote "Gazeta.Ru", the authorities have recently forced the major players of the food market to freeze prices of socially significant products. Most likely, this pressure on sellers and manufacturers will continue until the presidential elections since the signing of various agreements freezing the price is good political advertising. Therefore, while Wal-Mart really worth waiting.