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.
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.