Sbermarket expects Growth in Sales due to rising E-Grocery Demand | Financial Buzz

Sbermarket expects Growth in Sales due to rising E-Grocery Demand

E-commerce company Sbermarket expects huge growth in its 2020 sales compared to last year as the coronavirus pandemic has triggered a rise in online retail.  Sbermarket is manged by Russia’s Sberbank and internet firm Mail.Ru.  The company expects gross merchandise volume (GMV) to increase 11-13 fold for 2020 than last years USD 27.41 Million, General Director Asan Kurmanguzhin told Reuters. 

Kurmanguzhin predicts that the online share will reach 5% by 2022, equivalent to Russia’s oil and gas market without the benefit of providing foreign currency earnings.  If estimates are correct, online trade of consumer goods in Russia could reach 500 Billion Roubles annually, compared to the 60 Billion Rouble estimates by analysts before the COVID-19 outbreak. 

The coronavirus pandemic has forced change in the online ordering market from a secondary option to a higher demand role.  The shift to online shopping was already occurring on a global scale but the increase in orders in Russia after the country implemented quarantine measures in March insinuates that it took a little over two months to reach 2 million orders after it took the company almost seven years to achieve 1 million.