Russian Retail: Strong Growth Potential But Discounting To Outperform

BMI View: In line with our bullish view on the Russian consumer and specifically Russian retail, local discount major Magnit has posted strong 2011 growth. We have previously highlighted the discounter as one of our preferred ways to play the Russian consumer story over the medium-term and shares in the company closed up 5.7% on the back of the news. While we have a below consensus outlook for Russian macroeconomic growth in 2012, amid growing global headwinds and domestic political uncertainty, Magnit's aggressive expansion plans, coupled with the composition of sales growth in 2011, mean that we remain confident on

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