A network of hypermarkets Castorama will take from Russia

© RIA Novosti / Evgeny to Odinakovymi in fotobounce hypermarket Castorama in the building of the shopping center Golden Babylon on Prospekt Mira in MoscowA network of hypermarkets Castorama will take from Russia© RIA Novosti / Evgeny to Odinakovymi the image Bank

British retailer Kingfisher, which owns a network of hypermarkets Castorama, decided to leave the Russian market, said in a press release on operating results of the company.
In addition, the retailer will leave the markets of Spain and Portugal.

«Toposonic to apply our strategy with greater focus and efficiency in our key markets where we hold leading positions or are able to reach them,» said chief Executive officer Kingfisher Veronique Laury.

In Russia the company has 20 stores Castorama, Spain — 28 stores Brico Depot in Portugal — three Brico Depot. According to Lori, Russia is an attractive market, but the company’s share on it is relatively small.
She also added that the stores will continue operating as usual.

The reasons for leaving Russia

Respondents RIA Estate experts believe that the departure of Kingfisher is connected with the internal problems of the retailer.

Castorama have long been represented in Russia, but have failed to win significant market share,» said the Director of Department of trading real estate of company Knight Frank Eugene Akberdieva.
According to the Director, research Department in CBRE, Anna Shepelev, the DIY market in Russia has highly competitive and many companies in this segment continue to evolve.

«If the company decides to leave Russia, it is associated increasingly with the global strategy of the player,» she explains.

The head of Analytics in retail and industrial real estate at JLL Oksana Kopylova said that Castorama over 13 years of experience in the Russian market (since the opening of the first store) rose only to 21 hypermarket and was fourth in terms of revenue among other DIY networks.

The network behind the segment leader by this indicator («Leroy Merlin») almost ten times.

«Thus, the small weight of the player, a negative revenue trend and the fact that its withdrawal from the Russian market is not isolated (the company also goes to the markets of Spain and Portugal) spoke about the systemic problem of the retailer», says Kopylov.

She also recalled that this year in the Russian retail market in General, there is a very restrained dynamics of entry of new international brands. For the first three quarters appeared 23 foreign player versus 38 for the same period in 2017. During this same period, five international brands left the Russian market, including a representative from the DIY segment of the company K-Rauta, which sold its hypermarkets «Leroy Merlin».