A vigorous de-rating of the retail sector has created an opportunity to buy growth stories at a fraction of their fair value. The aggregated capitalization of our covered companies is now at 1Q10 levels (despite 55% higher EBITDA generation), which represents an average 34% discount to EM peers on 2012E EV/EBITDA. We believe that fears over the deterioration of sector growth and profitability are overplayed, and the sector should resume steady expansion from 1Q12, once the high-base effect is exhausted. We reduce our target prices by 4-15% to reflect higher COE and lower 2011 revenues, but reiterate our BUY recommendation on all our covered stocks.

The Great Baltic Adventure, the first cargo of Russian Imperial Stout to be shipped to St.Petersburg in more than 100 years, was given a rousing Launch Send-off at Royal Arsenal, Woolwich, London, last Saturday (14 May 2011). At a ceremony held at ‘The Dial Arch’ pub, Royal Arsenal, the Deputy Mayor of Greenwich, Cllr. Jim Gillman, wished the voyage every success and a safe journey.

US direct marketing company Herbalife has launched local manufacturing in Russia in partnership with  CM Michel company. Since April 2011 Herbalife Ltd.  has provided consumers with the first products manufactured in Russia — the line of body care creams "White tea". Herbalife’s new products were developed according the specifics of Russian market and consumers demands.

Aura Shopping Center, a 61,000-square-meter (657,000-square-foot) regional mall located in Novosibirsk, Russia, has been opened by Amstar and Renaissance Development. The project offers a diverse mix of more than 200 international and domestic retailers, a seven-screen cinema, a bowling alley, 22 restaurants and cafes and 1,700 underground parking spaces. The shopping center is on an infill site surrounded by high-end residential neighborhoods and is a five-minute walk from Novosibirsk's central square. At grand opening, the center was 99% leased.