Russia has slumped to tenth place in a ranking of attractive countries for global retail investors, according to a report by US consultancy firm A.T. Kearney.The country has dropped eight spots in terms of the urgency for foreign retailers to enter the market, Kearney’s 2010 Global Retail Development Index has noted.

“As the dust settles from a turbulent 2009, retailers in developed markets face a changed landscape that features fewer stores, heavier discounting and more fickle shoppers,” the firm said.

But while it dropped to tenth place, Kearney said Russia remains at the forefront of Europe.

“While it dropped eight spots in ranking, Russia remains Eastern Europe’s highest-ranked country. Slower GDP and retail growth rates and increasing market saturation contributed to the decline, yet the retail environment in Russia has not changed dramatically.

“Russia remains Europe’s largest consumer market, with rising disposable incomes and an expanding middle class, and it offers massive growth opportunities for retailers with a long-term approach,” the report noted.

Carrefour, the world’s number two retailer after Wal-Mart, said last October it had decided to pull out of Russia after only four months.

Despite this, Wal-Mart reiterated in June that it continues to search for the best way to enter the country.

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