Economic Profit as Indicator of Food Retailing Enterprises' Performance

Saturation of developed markets opens opportunities for food retailers to enter emerging markets. Due to this, there is active expansion of the largest network retailers of international level in emerging markets. Like in many emerging markets, modern formats of trade have been developed in Russia, such as supermarkets and hypermarkets.The major purpose of this article is to substantiate the practical value of the EVA concept in assessing the performance of food retailing enterprises. Quantitative methods of analysis of industry sectors and enterprises are applied to identify the trends in development of the Russian FMCG (Fast-moving consumer goods) retail market.Scientific value of the work lies in the development of the method for assessing the economic EVA profit, which was applied in practical assessment of performance of food retailing enterprises. The results obtained during the study revealed that only three of the five companies under study use the owners' invested funds efficiently. The other two large FMCG retailers use investment capital inefficiently, which has led to a drop in the market value of the enterprises.Practice of international companies that apply such an indicator as EVA to assess their performance indicates the expediency of its calculation in the assessment of the investment of network retailers in expanding the commodity-producing infrastructure in emerging markets.