Eastern European retailing

It was once the notion in the West that all Eastern European retailing was far behind its Western counterpart. Well on average, it still is, but it is catching up real fast!

Large markets such as Russia and the Ukraine are now populated by many Western retail brands who have simply exported their business to these markets and this has encouraged the smarter incumbents to modernise their businesses.

The biggest hurdles currently for these incumbent Eastern European companies are:

  • The cost of real estate is very high by comparison, to the available sales
  • The consumer is not so mobile so you need more stores
  • Their understanding of store organisation, which can be laced with outdated processes, which are grossly inefficient.

The first two points are the same for the foreign invaders, the last point however, can be a real competitive weakness!