Russian companies have been promising the European

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Photo: Zurab javakhadze / TASS

Russian retailers X5 Retail Group (owns the brand “Perekrestok”, “Pyaterochka” and “Carousel”) and “Ribbon” are more prospects for business development than their European competitors, follows from the analytical review Agency Fitch, excerpts of which leads to RBC.

In the document entitled “Sector of retail — Europe: economic conditions continue to support the stable Outlook on the sector despite high competition,” says that the pace of development of the Russian networks in the foreseeable future is above average. So, EBITDA (pretax profit) of X5 Retail Group in 2019 may increase up to ten percent. A similar figure can only claim the British chain B&M and Dutch Action.

“Tape” was in a group of companies, EBITDA growth which is expected to reach 5-10 percent, while the vast majority of European networks, the results will not exceed 2-5 percent. In this segment, especially a lot of British retailers. Their complexity will be associated mainly with country’s withdrawal from the European Union. Others hurt by strong competition and changing consumer habits.

The authors note that the Russian market of retail trade as a whole cannot be called too successful. It prevents the development of weak consumer demand due to the difficult economic situation in the country. However, X5 and Lenta get out of the number due to its “leadership position in the market, high margins and reasonable financial policy.”

Video, photo All from Russia.

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