Russian Retail Companies Become Importers to Reduce Price Growth

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Fruit import can hardly be considered as a high-yield business: the average profitability is about 5% due to the intense competition and the companies’ liability to keep the price level low. Direct import allows to improve the quality of the product range by reducing the supply chain and to make the retail prices more competitive.

Among the largest Russian retailers it is only X5 Retail Group which isn’t planning to become an independent importer. Russian retail chain Dixy has started its own import of fruit and vegetables which account for 12% of the total turnover. At the moment the chain imports 50 items of this category – about a half of the fruit and vegetables range.

Metro Group Buying provides Metro Cash & Carry with 80% of the imported produce. The company’s representative says that the share of the imported goods will grow. The French hypermarket chain Auchan imports fruit and vegetables from Spain and Portugal.

Source: www.foodretail.ru

Fruit import can hardly be considered as a high-yield business: the average profitability is about 5% due to the intense competition and the companies’ liability to keep the price level low. Direct import allows to improve the quality of the product range by reducing the supply chain and to make the retail prices more competitive.

Among the largest Russian retailers it is only X5 Retail Group which isn’t planning to become an independent importer. Russian retail chain Dixy has started its own import of fruit and vegetables which account for 12% of the total turnover. At the moment the chain imports 50 items of this category – about a half of the fruit and vegetables range. Metro Group Buying provides Metro Cash & Carry with 80% of the imported produce. The company’s representative says that the share of the imported goods will grow. The French hypermarket chain Auchan imports fruit and vegetables from Spain and Portugal.