Russian supermarkets are seeing an influx of Western shoppers.
The influx has been accompanied by a rise in demand from the United States, as well as the rise in prices in the United Kingdom.
Russia has been the most successful market in the Western world for the last five years, said Andrei Shvedov, head of Russian retail at consultancy firm BDO Group.
“The Russian economy has been able to withstand the sanctions imposed by the West and the fall in the value of the ruble,” he said.
But Russia has struggled to attract Western consumers, he said, and that is a problem that has put pressure on other markets.
With so many stores open in Moscow, Western shoppers have been able pick up groceries from Moscow’s most popular chain supermarket chain Rosneft, which is a joint venture between the state-owned Russian Railways and Rosneftegaz, the country’s largest oil company.
Shvedov said that Rosnefts shares have fallen as much as 50 percent in the last two months.
In contrast, Westerners have been buying groceries from a variety of stores, including Krasnaya Polyana and the Krasnova chain.
Russian grocery chains are looking for more space in Western markets.
The number of stores opening each month has jumped from about 500 to more than 800, said Shvedberg.
The average number of store openings per month has more than doubled from last year to 2,600 in 2017, according to Rosnefxstat, a Moscow-based company that tracks the industry.
There are also a variety and types of stores open each month.
At the moment, Western supermarkets are not allowed to carry Russian products, Shvedev said, though the company is exploring opening Russian supermarkets in some Western markets, such as Germany, that do.
Krasnova and Krasna are the largest and most popular stores in the country, with more than 10 million square meters of space, according the RosnefaT website.
While the prices have gone up, Shvetsv said that Krasnesas profits are likely to go up.
This is because they are not going to take the risk of selling goods in Russia,” he added.
And now that Westerners are buying more products in Russia, Krasnefts sales will likely increase as well, Shvenov said.
But Westerners do not have to wait for Krasnovas to open Russian supermarkets, Shvirdov said, but they can also buy groceries at a local supermarket.
One of the biggest reasons is that Krapins supermarket is opening its first stores in Eastern Europe, he added, citing a new policy that opened Krapin stores in Belarus and the Republic of Moldova.
Other Western supermarkets, including Tesco and Aldi, are also expanding their locations in Eastern European countries, but there is little indication that they will open Russian-language grocery stores.
Some Western grocery chains have opened Russian-speaking branches in Russia’s far eastern regions, including the region of Khabarovsk and Kaluga, where the Krapinsk store is opening.
These locations have been opened up because the market is growing rapidly, said Vladimir Tishchenko, head for food and agriculture at consultancy group Euromonitor International.
Tishchenko said that Russia has become an attractive market for Western consumers because of its relatively low inflation rate.
As Westerners purchase groceries in Russia from Western stores, Western consumers are buying goods that are more expensive than they were before.