【正文】 oEna. To avoid clashes with Metro, Billa has tried to open stores outside of Metro’s territory and has expanded in smaller cities. Romania’s economic growth remains strong at nearly 5 percent in 20xx. By western standards, the Romanian retail market is fairly underdeveloped。s potential is based on four elements in addition to the GRDI variables: ? Largest food market in Europe: The market totals US$58 billion according to official Russian statistics. Russians spend up to 80 per 1 Target Figure 2: Companies take different entry approaches Q uick expansion: Ahold, Tesco Escalator: WalMart Waitandsee: Casino, Carrefour 2 3 4 5 Source: . Kearney . . Emerging Market Priorities for Food Retailers cent of their ine on consumer goods. ? Population of 143 million: Thirteen cities in Russia boast more than one million inhabitants (more than 20 percent of Russia’s population) and the retail market remains undeveloped. For example, Novosibirsk (with million people) has only 40 grocery stores with an average of 500 square meters of space. ? Increasing spending power (US$1,041 annual ine): In Moscow and St. Petersburg, the average spending power reaches levels pa rable to or greater than those of Poland, the Czech Republic and Hungary. ? Economic and political reforms: Russia is now officially recognized as a market economy by the United States and European Union. Retailers are quickly capturing market share in cities other than Moscow, which has 12 million inhabitants, but they are also strengthening their existing positions. Auchan, after opening its first hypermarket in Moscow in August 20xx, is now planning to open in St. Petersburg. Its strategy is to achieve an aver age transaction of US$20 in its stores by pricing 10 percent below other retailers in the city. Metro, operating under the Real label in Russia, opened in St. Petersburg and is now investing US$900 million to open 20 hypermarkets in and around Moscow over the next three years. Other retailers are considering different strategies. Local experts believe that Casino might be planning to enter via acquisition. WalMart, Figure 3: Most attractive developing regions for retail “ ” “ ” (20xx versus 20xx) 45% 40% 40% 35% 30% 25% 20% 15% 10% 5% 0% 30% 30% 35% 20% 5% 15% 20% 20xx 20xx 5% 0% Eastern Europe Source: . Kearney Asia Americas . . Mediterranean Africa Emerging Market Priorities for Food Retailers which sent a delegation to Russia in June and December 20xx to check out the possibilities, might also be interested in taking a 75 percent stake in the Petrovsky business, which has 31 outlets in Russia. AVA entered anically under the Marktkauf brand in February 20xx. Of course, foreign retailers still face many issues in Russia. Metro and Auchan have been accused of unfair petition by local retailers, although selling below cost is not (yet) pro hibited in Russia. In addition, 40 percent of Russian retail sales are generated in gray mar kets—a solid improvement over the 70 percent generated in the 1990s, but still high. The local product supply infrastructure remains poor, and product availability is limited. The Slovak Republic ranks second on the GRDI, unchanged since last year. Its high score in the time pressure category (100) reflects a market that is unexploited by international retailers, and where GDP growth is more than 4 percent. In addition, the few foreign retailers that are in the Slovak Republic have limited market coverage. Germany’s Rewe has the 80 70 Hong Kong Figure 4: . Kearney GRDI ranking, 20xx Slovenia Hungary On the radar screen To consider To avoid 60 Poland Israel Czech Repubic Taiwan Mexico South Korea Malaysia Latvia Thailand Chile China Slovak Republic 50 Average = 54 South Africa Tunisia Philippines Bulgaria Morocco Egypt India Russia Romania Vietnam Turkey 40 30 20 Food, drink and tobacco retail sales in US$ billion, excluding tax for 20xx 30 Colombia Indonesia Venezuela Average = 34 40 Ukraine 50 Source: . Kearney Modern retail area per 1,000 inhabitants, number of international retailers in the country, GDP/retail five years CAGR (0 = high saturation。 mod ern retail area per inhabitants (retail saturation level)。 or supermarket and discount. The mix varies by retailer and region. International retailers Carrefour and Tesco favor a hypermarket and supermarket mix in Eastern Europe. In Asia, Carrefour primarily mixes hypermarkets and discount stores (opening in Shanghai this year under the Dia banner). WalMart also uses a mix in Puerto Rico and China. In addi tion to its existing hypermarkets, it has opened its popular Sam’s Club and supermarkets such as Amigo. In Latin America, Carrefour and Casino both sell through hypermarkets, supermarkets and discount stores. Hedging your