Economic Recovery and Rising Consumer Confidence to Improve Ukraine’s Retail Market Outlook: Ken Research

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Economic Recovery and Rising Consumer Confidence
to Improve Ukraines Retail Market Outlook Ken
Research
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• Key Topics Covered in the Report
• Detailed profile of the Retail Market in Ukraine
• Consumer demographics, trends and behaviours
• Historic and forecast retail sales value growth
  in Ukrainian Retail Market
• Competitive landscape of Ukraines Retail Market
• Analysis of key distribution channels of
  Ukraines Retail Market
• Emergence of online retailing in Ukraines Retail
  Market
• Detailed analysis of changing retail dynamics
  across various product segments

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Ken Research announced its latest publication on,
The Future of Retailing in Ukraine to 2020
Comprehensive data overview of the market, with
retail sales value and forecasts to 2020, offer
insights on the category and channel trends
within the Ukrainian Retail market.The report
further covers the overall retail sales of
products through four channel groups (Value
Retailers, General Retailers, Specialist
Retailers and Online) which includes 17
individual channels, such as Hypermarkets,
supermarkets and hard-discounters Home
improvement and gardening supplies retailers
Food and drinks specialists Online Convenience
Stores (including Independents) and Gas Stations
Department stores Clothing, footwear,
accessories and luxury goods specialists Other
specialist retailers Electrical and electronics
specialists Home furniture and homewares
retailers Value, variety stores and general
merchandise retailers Music, video, book,
stationery and entertainment software
specialists Cash and carries and warehouse
clubs Other general and non-specialist direct
retailers Drug stores and health and beauty
stores Vending machines Duty free retailersThe
analysis of the aforementioned trends has been
done across nine product groups including
Apparel,Accessories, Luggage and Leather Goods
Books, News and Stationery Electrical and
Electronics Food and Grocery Furniture and
Floor Coverings Health and Beauty Home and
Garden Products Music, Video and Entertainment
Software Sports and Leisure Equipment
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• Economic Environment of Ukraine
• The economy of Ukraine is an emerging free
  market. The economy has experienced a consistent
  fall in the GDP for a period of 10 years,
  starting 1991 that is following the collapse of
  the Soviet Union. However, as the Ukrainian
  economy began to recover in 2000, with a rapidly
  growing GDP between 2000 and 2008, the growth was
  ceased by the global financial crisis that
  reached Ukraine as the 2008-2009 Ukrainian
  financial crisis. The economy recovered and
  achieved a positive GDP growth rate in Q1 2010,
  but again in 2013, the economy lapsed into
  another severe recession and since then, the
  Ukrainian economy has been suffering from a
  serious downturn.
• Stringent and outdated labour market regulations
  and lack of labour force due to emigration and
  aging of population, has depressed investment and
  hurt the productivity of all sectors including
  that of the agricultural sector. Ukraine which
  was once known as the breadbasket of Europe, is
  now only a far off memory, thanks to the lack of
  modernization of the Ukrainian agricultural
  sector. The government procurement procedures in
  in Ukraine is biased towards the domestic
  companies, as a result the investors will not
  purchase the agricultural land. Russia-Ukraine
  conflict continues which affects investment flows
  and trade along with the ever increasing number
  of non-performing loans.

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• Looking at the key economic snapshot of the
  country, Ukraineis the home to 42.8 million
  people. With a GDP of 370.8 billion and a per
  capita income of 8,668, Czech Republic has a
  global ranking of162ndand a regional ranking of
  44th in Europe. The GDP has a negative growth
  rate of 6.8 and a 5 year compounded annual
  growth rate of -0.2. The country has an
  unemployment and inflation rate of 7.7 and 12.1
  respectively.
• Brief Overview of the Retail Market in Ukraine
• The per capita retail sales in Ukraine is
  significantly low, lower than that of Russia and
  Western Europe, despite having the 6th largest
  population in Europe. Political instability,
  tough economic environment and strong currency
  devaluation are all factors contributing to
  reduce the consumers purchasing power in
  Ukraine. As a result, the Ukrainian retail
  markets current situation is not very bright. As
  incomes are falling, people are cutting on their
  expenses, even on the essential of goods. As the
  Ukrainians observe rising prices of products and
  services, they economize their purchases and
  limit them to the most necessary products. As a
  result, the sales volume were highly affected
  which was slightly compensated by the rising
  prices.
• Apart from the aforementioned factors working to
  contract the sales volumes, the falling
  population owing to the separation of Crimea in
  2014 and inactive purchases from the people
  living in the Eastern regions led to a fall in
  the volume of sales in Ukraine.

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• Coming to the various channels of distribution,
  convenience stores and discounters remain the
  most popular distribution channels. General
  retailers hold the largest share of retail sales
  in 2015, and will continue to lead the market in
  2020. There has been a tremendous increase in the
  quality trading areas by the rising stock of
  modern shopping centres which in turn has
  attracted many well -known international brands
  to the Ukrainian retail market. Online trading is
  another emerging channel of distribution. The
  total turnover of online trading in Ukraine has
  already exceeded USD 1,000 m, and in 2010 and is
  expected to register the fastest growth during
  the forecast period. Hypermarkets, supermarkets
  and hard-discounters recorded the highest channel
  sales value. In the product category, Furniture
  and floor coverings is expected to grow the
  fastest followed by Music, video and
  entertainment software over the next five years.
• Major Players in the Ukrainian Retail Market
• The grocery retailers proved to be more
  competitive than their non-grocery counterparts
  as non- grocery products could be economised in
  the time of economic difficulty. As a result, the
  Ukrainian retail market is led by grocery
  retailers.
• The major food retailers in Ukraine are Fozzy
  group and ATB market which had a major
  competitive advantage due to their nationwide
  presence. Other major food retailers were Metro
  CashCarry, Auchan, Amstor, EKO market and many
  more.

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• The Ukrainian food retail market is highly
  fragmented with the top 5 retailers holding only
  15 of the market share in 2010. Share of
  unorganized trade such as open markets is still
  very high, accounting for almost 50 of the total
  food retail sales.
• The major non grocery retailers operating in the
  Ukrainian retail market are Foxtrot, Comfy,
  Eldorado and some international retailers such as
  Yves Rocher, LOccitane and Lush.
• Ukraines Retail Market Prospects
• The retail industry is one of the most dynamic
  and prosperous industries of Ukraine,
  contributing 16 to the countrys GDP and ranking
  third in terms of total foreign investment
  inflows. The growth prospects of the Ukrainian
  retail market is dependent on a number of factors
  such as the economic recovery, speed of dispute
  settlement within the country and Europe, return
  of consumer incomes along with the consumer
  confidence.
• Some of the key factors expected to drive growth
  of the Ukrainian Retail sector are
• Rising consumer incomes
• Stable national currency reduced exchange risks
• Increasing proportion of young population
• Availability of quality commercial real estate

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• However, the retail market in Ukraine is also
  subject to certain challenges such as low
  salaries in some part of the country prevents the
  growth of non-grocery retailing, widespread
  employment in the private farm sector supports
  the continued existence of farmers markets and
  restricts the growth of the retail sector in the
  country.
• To know more on coverage, click on the link
  below
• https//www.kenresearch.com/consumer-products-and-
  retail/wholesale-and-retail/future-retailing-ukrai
  ne/40170-95.html
• Related Reports
• https//www.kenresearch.com/consumer-products-and-
  retail/wholesale-and-retail/future-retailing-czech
  -republic/40169-95.html
• https//www.kenresearch.com/consumer-products-and-
  retail/wholesale-and-retail/future-retailing-belgi
  um/21551-95.html

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Contact Ken Research Ankur Gupta, Head
Marketing Communications query_at_kenresearch.com
91-124-4230204