Page 132 - RusRPTSept22

9.1.5 Retail sector news
Stocks of consumer electronics held by Russia’s partners in the Eurasian Economic Union (EUU) are insufficient to meet Russia’s demand for the so-called parallel imports of premium brands and will not have more available until the end of this year, The Bell reports.
Most of the world’s leading consumer electronic brands left the Russian market shortly after the invasion of Ukraine in February and halted shipments to Russia. The government quickly passed laws allowing for parallel imports where retailers can sell international goods without the producer's permission. Countries like Turkey have stepped into the niche and have massively increased the delivery of these goods and Russia’s leading e-commerce sites are also actively sourcing these goods in third countries and importing them to Russia.
Shipments of tablets, smartphones and computers to Russia from "friendly" countries are still coming from excess stocks, but these will fall with the onset of the autumn peak in demand. Local sellers will not give up their local market share and manufacturers will not increase allocation to Kazakhstan, Belarus, Armenia and Kyrgyzstan on a scale that would satisfy the Russian demand. Sales of smartphones in Russia in April 2022 declined by 30%, Kommersant daily
The number of diners in Moscow restaurants fell to a five year low as the summer comes to an end due to high prices and a growing caution amongst consumers, Kommersant reports. The spring surge is over and as summer starts to fade more Muscovites are choosing to stay in rather than go to their favourite eatery. By August, the traffic of metropolitan establishments was lower than last year by 11%, according to Focus Technologies data as cited by the Russian daily. Double digit inflation has hit food prices especially hard making dining out more expensive. In August, the average check in cafes and restaurants in Moscow increased by 9% y/y. The departure of expats and international tourists have also brought the turnover numbers down. Restaurateurs do not expect to see any improvement until the holiday season starts at the end of this year. In June and July, attendance at Moscow restaurants grew by 43% and 37%, respectively, but largely due to low base effects caused by fall in attendance during the pandemic lockdowns when only summer terraces were allowed to operate.
Stocks of Apple and Samsung smartphones are running out in Russia. The Chinese vendor Realme in July came in second place in sales of smartphones in Russia in units, surpassing Apple and Samsung combined in this indicator. Sales of the American and Korean brands are rapidly falling - the once leader Samsung took only 8.5% of the market in pieces at the end of the month, and Apple - 7%. Retailers attribute this to a lack of official supplies and
132 RUSSIA Country Report September 2022 www.intellinews.com