Streamlining of the Russian market

Infoline, a market research institute, has ascertained growth for the Russian DIY market in 2013 that was rather minimal by Russian standards: the market grew by 7.3 per cent to RUB 970 bn. The statistics cover 264 branches of dealers from the DIY retail segment and related ranges. Their combined sales area amounted to 3.5 mio m². The market researchers explain these figures as a streamlining of the Russian marketplace. In addition to Starik Khottabych and Armada, Intexo from St Petersburg is yet another company that failed to survive last year. The Logika trading company had to close down its 16 branches that made up the Eurointerieur and Azbuka Remonta chains. Other companies concentrated at best on the optimisation of their business processes. At the final count, 2013 was the first year when more dealers reduced their sales area (66) than expanded it (64). Industry experts expect that the streamlining of the Russian DIY sector will continue over the next few years. This also includes consolidation: the international DIY retailers in Russia achieved a market share of nearly 25 per cent in 2013. On the other hand, though, the proportion of local companies working throughout Russia is experiencing steady growth.