The distribution network in Ukraine

Evolution of the Sector: According to the Ukrainian State Statistics Service, Ukraine’s retail trade turnover (excluding motor vehicles) in 2020 was UAH 854.73 billion, a 9.8% increase compared to 2019. Ukraine’s food retail sales grew by 14.1% in 2020 (USDA). Independent retailers account for around 20 percent of total retail sales, while outdoor markets account for around 30 percent. Less than half of the overall retail market is controlled by chains, reflecting the considerable development opportunities that remain in Ukrainian retail. Retail superstore chains are available in the main Ukrainian cities and primarily specialise in Fast Moving Consumer Goods (FMCG), consumer electronics, Do-it-Yourself (DIY), automotive parts and accessories, cosmetics and toiletries, pharmaceuticals and health care goods.

The major international retailers in the Ukrainian retail FMCG market are Metro Group, Auchan, Rewe Group (Billa), and Spar. The top four national FMCG retailers in the market are the Fozzy Group, ATB Market, Retail Group, and Furshet. Regionally, the top retailers include: Tavria V and Kopeika in southern Ukraine; and Pakko, Barvinok, and Kolibris in western Ukraine. The most popular FMCG outlet formats that opened in Ukraine in the recent years were discounters, corner shops, and supermarkets. Domestic retailer Fozzy continues to expand its number of retail outlets in Ukraine. In mid-2016 the group launched a new discount retail outlet 'Thrash' and by the end of the year had 30 stores in cities including Kiev, Mykolaiv, Odessa and Rivne. Within the category of consumer electronics and household appliance chains - currently, the largest household appliances and electronics market players are Foxtrot, Eldorado, and Comfy. These chain operators sell most of the consumer electronics and household appliances through their retail outlets located throughout Ukraine. “Do-It-Yourself” chains - The national chain Epicenter remains the leading DIY player, with a market share of around 50 percent. The only foreign player in the market is Leroy Merlin (part of Groupe Adeo), which operates three stores in Kiev. Branded Apparel and Footwear - Multiple national premium fashion outlet chains sell branded clothing and footwear including Argo, Top Brand, Helen Marlen Group, and Melon Fashion Group, Intertop is a Ukrainian chain for branded footwear.

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 About 20-30 percent of pharmacies are publicly owned. Many regions and municipalities have been looking to expand or launch so-called 'social pharmacies', which stock essential medicines and charge little or no mark-up.
Market share: Since 1991, when Ukraine declared independence from Russia, the retail industry has grown, with a dozen chains nationwide and a few strong regional players. Some retailers operate diverse chains of stores that differ by size and brand. According to the Ukrainian Statistics Agency, in 2020, there were:
•    7,730 grocery stores of less than 120m2
•    1,859 specialty food stores
•    2,676 convenience stores, from 120m2 to 400m2
•    2,016 supermarkets, from 400m2 to 2500m2
•    142 Hypermarkets, over 2500m2
Retail Sector Organisations: Ukrainian Retail Association

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