Kids Retail Demonstrates Growth in Russia

The number of retail chain shops selling goods for children in Russia started growing after the crisis years of 2015-2016, RBC Market Research informed.

Kids Retail Demonstrates Growth in Russia

According to Retail chains selling goods for children 2017 from October, 2016, to August, 2017, the number of retail chain outlets increased by 4.4% LFL. In numbers, it means growth from 7,048 to 7,356 retail chain outlets.

Meanwhile, the number of franchise shops in the market of the goods for children decreased by 26%. Some retail chains including franchise chains, disappeared during the consolidation of the market of the goods for children. For example, a British chain Mamas&Papas and an Italian chain Prenatal left the market although the crisis peak had been over.

The share of franchise retail chains in 2017 fell down from 20.8% to 10.5%. The share of franchise shops opened in 2017 decreased from 34.6% to 25.7%. The market analysts suppose that in a high competition with general retailers not too many specialized brands are attractive for investing. But even the retail chains with a stable pool of partners have noted a decrease of interest towards franchising and have concentrated on working with existing partners.