Crisis-struck, Russian retail lures global majors

Wal-Mart, which is increasingly looking overseas to fuel expansion, last year joined the Russian retail lobby group, after hiring an executive to head its efforts to explore business opportunities in Russia and neighboring markets.

Sources have said Wal-Mart hired 30 Russian office staff and is in acquisition talks with local chains that may need a cash injection to cope with the financial crisis.

"Russia remains a market of interest for Wal-Mart. We recognize that our success in this market will depend upon our ability to meet customers' needs in all economic conditions," Richard J. Coyle, Wal-Mart senior director for international corporate affairs, told Reuters.

French hypermarket chain Carrefour, the world's no. 2 retailer, plans to open its first Russian store in 2009 while other operators are reviewing the country's potential.

"Russia is still a large retail market that cannot and will not be ignored by global retailers. Despite current crisis conditions, Russia is still among the fastest growing retail markets, with population sizable enough to influence the portfolio of a global retailer," Fletcher said.

(Editing by Conor Sweeney and David Cowell)