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Financial Analytics: Science and Experience
 

Competitiveness of retail networks in the Russian market of food retail during the economic downturn

Vol. 9, Iss. 48, DECEMBER 2016

PDF  Article PDF Version

Received: 8 September 2016

Received in revised form: 2 October 2016

Accepted: 17 October 2016

Available online: 25 December 2016

Subject Heading: MONITORING OF ECONOMIC PROCESSES

JEL Classification: L14, L81

Pages: 50-62

Sigarev A.V. Plekhanov Russian University of Economics, Moscow, Russian Federation
alexsigarev@mail.ru

Kosov M.E. Plekhanov Russian University of Economics, Moscow, Russian Federation
kosovme@mail.ru

Importance The research constitutes an attempt to evaluate the concentration degree in the Russian retail market during the economic downturn, and concludes on the competitiveness of retail networks.
Objectives The research verifies the hypothesis assuming that the downturn of the Russian economy makes some market agents leave the food retail market, thus increasing the market concentration and invigorating the power of those retail networks that are more competitive.
Methods To verify the hypothesis, we analyzed statistical data.
Results We analyzed a number of retailing indicators of the Russian Federation, estimated concentration indices, emphasized the role of M&A in the food retail market as a concentration trigger, and mentioned some market actors, which left the market.
Conclusions and Relevance Following the research, we pointed out two trends. The market share of retail networks increases in the food retail market, with concentration growing in the part of the market that is dominated by retail networks. We conclude that the hypothesis has been verified.

Keywords: retail network, food retailing, competitiveness, competition, concentration

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