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The paper examines the role that potentially could be played by the retailing sector in the economic and social transformation in Russia. The move towards a consumer goods society, by its very definition, necessitates the developments of channels whereby consumer goods can reach their end customer and consumer. In this context various models of relating evolution are considered as well as an examination of the possible methods by which retailing will develop over time. The potential for inward investments is examined but the paper concludes that inward investment by retailers from the western European states will take the form of skills investment rather than financial and operational investment. The most important element in the future evolution of retailing will be the development of the multiple format as well as the procurement from indigenous consumer goods suppliers “driven” by the multiple retailers.

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