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K-Rauta is lowering its sales expectations
The Russian DIY market grew by approx. 15 per cent overall in the first six months of 2014 to RUB 500 bn (around € 10 mio). Industry experts explain this rise by a 30 per cent increase in the residential space made available during this period.
In spite of this, some western European companies are downgrading their sales expectations for the Russian Federation in view of the continued weakening of the rouble and sanctions by the West. K-Rauta thus foresees a decline in sales in Russia. The Finnish Kesko Group has revised the planned revenues of its Russian DIY store subsidiary K-Rauta for 2017 downwards from € 800 mio to € 500 mio. According to the group’s half-yearly report, the reasons for this are the generally unstable business environment and the weaker rouble.
According to sector rankings for 2013, K-Rauta occupies the number eight slot in the Russian market. Its 13 stores cover a total retail area of nearly 100 000 m².
Sales by the K-Rauta stores fell by 8.1 per cent in the first six months of 2014 to € 118 mio. The company is nevertheless targeting a store network of 30 stores in Russia in the medium term and intends to invest € 100 to150 mio per year in this.
In spite of this, some western European companies are downgrading their sales expectations for the Russian Federation in view of the continued weakening of the rouble and sanctions by the West. K-Rauta thus foresees a decline in sales in Russia. The Finnish Kesko Group has revised the planned revenues of its Russian DIY store subsidiary K-Rauta for 2017 downwards from € 800 mio to € 500 mio. According to the group’s half-yearly report, the reasons for this are the generally unstable business environment and the weaker rouble.
According to sector rankings for 2013, K-Rauta occupies the number eight slot in the Russian market. Its 13 stores cover a total retail area of nearly 100 000 m².
Sales by the K-Rauta stores fell by 8.1 per cent in the first six months of 2014 to € 118 mio. The company is nevertheless targeting a store network of 30 stores in Russia in the medium term and intends to invest € 100 to150 mio per year in this.
