Retail & E-commerce

"In 2018, retailing in Ukraine saw current value growth across most channels, which was largely supported by the gradually improving macroeconomic conditions: GDP and disposable incomes were on the rise. This factor impacted grocery retailing, with the improving performance of convenience stores, pharmacies retail points and new-coming international brands."




Retailing in Ukraine 2019,
Euromonitor

Retail &
E-commerce

"In 2018, retailing in Ukraine saw current value growth across most channels, which was largely supported by the gradually improving macroeconomic conditions: GDP and disposable incomes were on the rise. This factor impacted grocery retailing, with the improving performance of convenience stores, pharmacies retail points and new-coming international brands."




Retailing in Ukraine 2019,
Euromonitor

Recently Kyiv and other big cities welcomed newcomers, stores of famous brands. What has changed? For the last two years in a row, the retail turnover of the country has been demonstrating a stable two-digit growth. Only during 2019 retail turnover of Ukraine grew by 10.3% YoY resulted in 20.3 billion USD.

The retail market is gaining momentum in Ukraine. Retail growth was buoyed by high consumer demand and individual income growth – mainly in wages. Besides, inflation cooled down, helping the retail market to grow further. During the first half of 2018, 11 new international brands entered the Ukrainian market, which increased investors' interest in retail real estate assets and the retail market as a whole. It is likely that the Ukrainian market, which is not filled with the international brands, is becoming increasingly attractive against the background of declining sales of large retailers in economically developed countries, despite the perception of Ukraine's economic and political situation as unstable.

Retail superstore chains are available in the main Ukrainian cities and primarily specialise in FMCG, consumer electronics, Do-it-Yourself (DIY), automotive parts and accessories, cosmetics and toiletries, pharmaceuticals and health care goods. During several last years though, new shopping malls that meet expectations and criteria of international brands appeared on the retail map.

Over 6,000 businesses are engaged in selling pharmaceuticals. Pharmaceuticals are sold through about 20,000 private and state-owned pharmacies and pharmacy retail points. Ukraine's pharmaceutical sector is one of the fastest-growing and most crisis resistant consumer industries in the economy. A major growth driver is import substitution, building a strong case for international pharma companies to increase investment through the purchase of existing players or building their manufacturing in Ukraine. The immense consumption gap versus peer countries is another growth driver: per capita, pharmaceutical expenditures in Ukraine are only 15-25% of the levels of neighbouring countries.

The Ukrainian e-commerce sector swiftly recovered from the 2014-2015 financial and economic crises and has reported up to 30 per cent of annual growth over the past three years. This is one of the highest levels in Eastern Europe.
In total, in 2018 it was spent 54% more on all marketplaces than last year. At the same time, the number of orders increased by 47%. The demand for everyday goods and children's products is growing. Most often in 2018, customers bought clothes, shoes, accessories, appliances, electronics, consumer goods, home and garden products, cosmetics and perfumes. Also, the following categories are growing the most actively: goods for children, auto- and motorcycle, as well as appliances and electronics. It is expected that in 2019 the demand for online-shopping for food will also increase significantly.
Ukrainian consumers are willing to try foods from other countries but expect quality products at a competitive price. Major multinational and local companies will continue to expand throughout Ukraine, improving their online platforms to capture more consumers via e-commerce and mobile applications to offer discounts tailored to each consumer.


Robin Gray,
Senior Agricultural Attache at U.S. Department of Agriculture


Your takeaway? Ukraine is open for your business!
We help savvy businesses to invest and trade with Ukraine NOW!
Your takeaway? Ukraine is open for your business!
We help savvy businesses to invest and trade with Ukraine NOW!
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