MAPIC: Moscow, St Petersburg and Kiev set to become top retail markets

The two largest Russian cities, Moscow and St Petersburg, and the Ukrainian capital Kiev are on course to become leaders in terms of retail sales growth in Europe, according to new research by Jones Lang LaSalle.

The research entitled 'Core Cities and Rising Stars' indicates that with an annual growth of 4.2% to 4.8% the cities will take third, fourth and fifth place respectively in the ranking of the most actively growing retail markets in Europe.

According to Jones Lang LaSalle, Moscow, St Petersburg and Kiev are among the 20 largest European markets by population, while the purchasing power of the residents of these cities is significantly lower.

Moscow, for example, takes first place by population but by purchasing power it takes only 46th with purchasing power per capita of €11,000. St Petersburg is at 14th place by number of inhabitants but at 54th place by purchasing power (€6,300).

Kiev is at 17th place by population, but according to purchasing power it takes 57th place, the lowest of all the countries surveyed (€3,600).

According to the research, the leaders by purchasing power are the citizens of such small cities like Zurich (€38,600), Oslo (€25,300) and Luxembourg (€27,200).

Olesya Dzuba, deputy head of research, Jones Lang LaSalle, Russia and CIS, commented: 'Despite comparatively low personal income levels, large populations, combined with a high share of spending on goods and services in total revenue (up to 75%), emerging markets look attractive for retail players in the medium term.

'During five years from 2013 to 2017 Moscow retail sales is expected to grow by 4.8% on average annually, putting the Russian capital in 3rd place in Europe according to the ranking. Retail sales in St Petersburg will grow by 4.5% and by 4.2% in Kiev, putting them in 4th and the 5th place respectively. Higher rates will be observed only in Turkey. According to the forecast, retail sales in Istanbul and Ankara may grow more than 5% per year.'

Here's a link to more news from Mapic 2013