Postscript

Russian Retailers Retreating from Ukraine

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Milos Ryba

Politically divided and severely impacted by the global economic crisis, Ukraine has seen several Russian retailers leave the country.

The combination of difficulties in their home market and the lower profitability of Ukrainian units effectively left them with no choice but to pull out.

On the other hand, Western European companies like Metro and Rewe are looking to invest in Ukraine. Nevertheless, over the next five-plus years, the Ukrainian retail scene is likely to remain fragmented and dominated by domestic players.

"Drive" Concepts Gain Speed in France

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Isabel Cavill

In France, store concepts known as “hypermarchés drive” or drive-through hypermarkets are springing up across the country.

Auchan was the pioneer of the format in France, launching the first Auchandrive in the Lille region in 2000. Four years later, the retailer opened a stand-alone version, called Chronodrive. Although developing at a fairly slow pace, Auchan plans to double its network of Auchandrive outlets to 40 by the end of this year.

Voucher Plans

Aim to Get Asians Spending

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Robert Gregory

Aim to Get Asians Spending

With the effects of the global economic crisis now felt in most Asian markets, a number of governments in the region are looking to jump-start growth by encouraging consumer spending through the distribution of consumption vouchers.

New Dawn for Retail in Vietnam

Vietnam’s embryonic modern retail sector opened 2009 with a significant shift in the regulatory environment

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Robert Gregory

Vietnam’s embryonic modern retail sector opened 2009 with a significant shift in the regulatory environment

As part of its World Trade Organization membership, the country opened its retail sector to foreign companies on January 1, allowing foreign retailers to hold more than a 49 percent stake in a local joint venture for the first time. Going forward, foreign investors will be able to establish 100 percent foreign-owned enterprises, which should lead to a significant shift in the structure of the market in the medium to long term.

Japanese Retailers Reach Out to Price-Conscious Consumers

Global financial turmoil has taken its toll on consumer confidence in Japan, and shoppers are beginning to tighten their belts.

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Taneo Moriyama

Global financial turmoil has taken its toll on consumer confidence in Japan, and shoppers are beginning to tighten their belts.

The recent sharp increase in the value of the yen could damage Japan’s economic outlook even further as it may curb exports, which could eventually create unemployment. In these difficult times, Japanese retailers are looking to develop low-price strategies to encourage consumers to continue spending.

Indian Retailers Revise Grand Expansion Plans

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Manu Ghai

Despite growing demand for modern outlets in India, retailers are beginning to see that rapid expansion does not always pay off. Higher operating costs, resulting from rising property prices and food-price inflation, are impacting retailers’ expansion plans. Market conditions are, therefore, forcing companies to look long and hard at their expansion to stay in shape for the future.

Small formats first to slow expansion

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