Development of retail chains in Russia by different product groups

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Marketing research
Development of retail chains in Russia by different product groups
Title: Development of retail chains in Russia by different product groups
Section: Advertising / Marketing / SEO, Research

Work description:
The slowdown in economic growth, the decline in industrial production, the drop in the country's investment appeal in 2013, as well as the financial and economic crisis that began in 2014, made adjustments to the business of many companies: falling oil prices, economic sanctions from the United States and Western countries, and the decline in industrial production led to the devaluation of the ruble, capital outflow, rising interest rates on loans, inflation, a decline in the real disposable income of the population, and a change in consumer sentiment among citizens.
One of the main indicators of economic development is the retail turnover ratio. In 2014, a decline in it was observed, which in turn had a negative effect on production and investment (the drop in demand led to a drop in production, many projects were frozen, some international companies left the Russian market). The unstable financial situation in Russia produced a negative economic effect on international and federal retail chains - many players were forced to seek new points of sale, optimize expenses, reduce the number of stores - closing the less efficient ones, and revise their development plans toward reducing risk.
In this situation, it is necessary to analyze development, identify general trends and patterns, and clarify the development plans of the largest federal and international retail chains in the following product groups (the groups are presented in aggregated form, to form a broad sample):
• DIY
• Children's goods
• Sporting goods
• Home appliances and electronics
• Furniture
• Grocery chains
• Fashion (clothing, footwear)
• Food service
• Fitness
• Entertainment
Before the onset of the 2014 crisis, retail chains had ambitious development plans, but because of the change in the country's economic and political situation, as well as the high degree of uncertainty and increased risk, they were forced to reconsider their development plans. Most retail operators faced a choice: pursue a riskier strategy of maintaining market share, or choose a strategy of optimizing the business. Some players did not develop a clear development strategy for the current market and adopted a wait-and-see position, while others, on the contrary, worked out a strategy and decided to take advantage of the situation.
The degree to which the crisis affects different product groups or retail chains varies: most often, companies reported a decline in sales levels and a reduction in retail outlets; however, there are companies that, on the contrary, find sources of growth and increase their profits. Here it is important to determine exactly which factors lead to particular changes in the business of retail chains.
This study will reflect information on the following points:
1. What development plans the retail chains had before the onset of the 2014 crisis;
2. When the retail chains felt the impact of the crisis most acutely;
3. Exactly how the crisis adjusted the retail chains' development plans;
4. Which cities/regions are a priority in the retail chains' development;
5. Development plans: how many retail outlets they plan to open/close in the next 1-1.5 years. Significant players;
6. Whether the retail chains managed to benefit from the crisis: increasing the company's market share or profit.
The result of the work will be a modeled scenario regarding the development of retail chains under conditions of economic crisis in Russia, which will also help developers adjust their plans.

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