Optimistic mood in eastern Europe

In some countries, the recession has caused sales of pet products to nosedive. On the other hand, the crisis has had no effect on the pace of growth of the leading pet supplies chains. No matter whether it´s PetSmart, Fressnapf or Pets at home, the number of stores has been increasing as if nothing had happened. In western Europe, where the pet sector has suffered comparatively little from the effects of the recession, this phenomenon might be understandable. But in eastern Europe, where the financial crisis has hit disproportionately hard, it´s surprising to see that the number of new pet stores is increasing, even in financially tough times. In Russia above all, the leading chains are continuing to press ahead at speed. Several companies have now sprung up in Moscow and St. Petersburg and are getting ready to carve up the still growing market between them. Pet owning as a hobby is still in its infancy in Russia, and the market potential there is considered to be huge. Far from getting hurt, the emerging chains are all growing at present.Russia is not an exceptional case. In Poland, too, many chains have developed over the years and are now realising their growth plans in stages. Their room for expansion has long since ceased to be limited to big cities like Warsaw and Lodz, and they now cover a large part of the country. Whereas the numerous family-owned firms that continue to exist in Russia and Poland have been joined by a crop of chains all competing for the highest possible market share, the pet product retail landscape in Hungary and the Czech Republic is rather more transparent. In Hungary, the Fressnapf Group is the undisputed market leader, while in the Czech Republic the Pet Center chain, established by Gimborn Czechia, assumes this role. In countries like Romania, Croatia, Slovakia and Slovenia too there are usually two or three speciality chains that stand out from the large number of pet shops in terms of size. There´s still plenty of scope for change in all the eastern European countries. The market there is far from being as rigidly structured as in big western European countries or in the USA or Canada. And so a few changes might take place in the next few years, and companies that are currently operating in the shadows could well assume a leading position in the market. Yours Ralf Majer-Abele
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