June 14 2006, 17:08

Experts forecast active development of retail trade in Ukraine soon

Experts forecast retail trade to develop actively due to new foreign retail companies which are likely to enter Ukrainian market soon. This was the opinion presented during the conference of Adam Smith Institute "Ukrainian forum of food industry and retail trade" which started June 14th in Kyiv.

The representatives of the largest national chins in Ukraine were united to think that this market has a great perspective. Respectively, severe competition should be expected. "Some world companies opened their offices in Ukraine; they are ready to enter Ukrainian market", Igor Balenko said, the President of the company - owner of FURSHET supermarket chain. He also mentioned that, as of today, Ukraine is one of five the most attractive and actively developing retail markets in the world.

At the same time, Irina Kazanchuk, the Analyst of EUROMONITOR international company thinks that the expansion of foreign retailers on the national market is likely to happen not earlier than in 2-3 years. The thing is the risks are still rather large in Ukraine. According to her observations, many companies "actually study Ukrainian market, but are still afraid to enter it". Foreigners mention low incomes of Ukrainian population (growing, but still low incomes) to be one of the main risks, as well as politic and economic risks.

At the same time, according to the forecast done by EUROMONITOR company, in 2005-2010 Ukraine will witness the most dynamic market development of retail chains on the territory of Eastern Europe. The growth of this market is expected to be around 22%.