Arab Today, arab today russians go on shopping splurge as ruble plunges
Last Updated : GMT 03:07:18
Arab Today, arab today
Arab Today, arab today

Russians go on shopping splurge as ruble plunges

Arab Today, arab today

Arab Today, arab today Russians go on shopping splurge as ruble plunges

Russia is scrambling to halt a run on the ruble
Moscow - AFP

Russians are feeling the pinch from the slumping ruble, but one somewhat paradoxical result has been a spending spree as consumers snap up electronics, furniture and cars before prices soar.
In general, Russians' spending power has gone down with the ruble -- which this week hit a record low against the dollar and has lost more than half of its value against the euro due to falling oil prices and Western sanctions over Ukraine. In addition, inflation is forecast to soon climb above 11 percent.
But for those with savings who were planning to buy big-ticket imported items, now is the time to hit the shops, before prices go up drastically to reflect the new cost of imports. And for Moscow's large stores and malls, it is boom time.
In an Ikea shop on a weekday afternoon, the section selling fitted kitchens -- the highest-priced items in the store -- was packed with customers. Ikea has announced that it will put up its prices for kitchens and other goods on December 18.
At a peak time for shopping ahead of the New Year, the country's main holiday, "the number of people in the stores has gone up also because of prices going up", the Swedish chain, which has annual turnover in Russia of more than one billion euros ($1.25 billion), said in a statement sent to AFP.
Ikea had previously promised to keep its prices the same for 2014, but the chain then explained it "could not be independent from external factors".
Apple in late November upped its prices in Russia by 20 percent, without warning, after its products had suddenly become cheaper than in Europe, an opportunity that some canny consumers spotted.
Interest rates have shot up from 5.5 percent at the beginning of this year to 10.5 percent on Thursday and then 17.5 percent on Tuesday, but the central bank has not been able to keep a ceiling on inflation or a floor under the ruble.
Many Russians are experiencing deja vu -- they have lived through several serious economic crises in the last 25 years, when many saw their savings go up in smoke.
- Rush to buy -
Household electronics chain M.Video confirmed it had seen footfall rise in early December, partly because of a trend to start shopping earlier for New Year gifts, but also due to the ruble's plunge.
"Customers are trying to lock in the value of their ruble savings and invest them in electronics," said spokesman Anton Panteleyev.
When the chain held a "Black Friday" event in late November, sales went up sharply and the best-selling items included flat-screen televisions, washing machines and smartphones.
"People rushed to buy expensive things like plasma TVs, tablets, notebooks and so on, trying to save their rubles that are drastically losing their value," said Maria Vakatova from Watcom consultancy group, which tracks high-street trends.
The tactic of going shopping when the economic situation gets tough may distinguish Russia from the West, analysts said.
"In this way, Russia is different from developed countries... There, when a crisis begins, people immediately start saving," said Igor Nikolayev, head of the FBK Strategic Analysis Institute.
"In our country, when a crisis comes, it is accompanied by a steep loss of value of the national currency and people abruptly start spending and for a time this softens the situation somewhat."
Such behaviour is "rational: everyone understands perfectly well that prices are going to change," Nikolayev said.
The popular weekly Argumenty i Fakty recently advised its readers to buy electronics, cars, clothes, which are generally imported and therefore directly affected by the falling ruble.
The car market also experienced a boom, with sales of the main foreign makes sold in Russia soaring in November after having been in a deep rut for most of the year.
The Association of European Businesses, which logs car sales, said the retail demand was "extraordinary".
Economist Nikolayev forecast this consumer boom will last "another couple of months, until people have spent all the rubles they are ready to spend."
After that "the most difficult period begins," he said.
The Russian central bank warned Monday that the Russian economy could contract by nearly five percent in 2015 if global crude prices remain at their current levels, which would cut sharply into government spending in the highly oil-dependent country.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russians go on shopping splurge as ruble plunges Arab Today, arab today russians go on shopping splurge as ruble plunges

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today russians go on shopping splurge as ruble plunges Arab Today, arab today russians go on shopping splurge as ruble plunges

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday