Dixi

Russian Retailer Dixy to Launch Online Sales with Sberbank

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One of the largest Russian retailers Dixy Group will launch online grocery sales of its format Viktoria in the first half of 2020, the CEO of the group Igor Pletnev told Vedomosti. Pletnev did not specify which is the marketplace the sales will be hosted on.

Currently largest e-commerce marketplaces include Wilderberries, Ozon, Beru of Yandex.Market, AliExpress, Tmall, Goods developed by electronics retailer major M.Video-Eldorado, and others.

Dixy will team up with Sberbank´s delivery and logistics service SberLogistika in development of the delivery solutions.

This year Dixy Group merged with liquor store chains Bristol and Red & White, with annual revenues of about RUB800bn ($12bn) and over 13,000 retail points of sale creating the third biggest retailer in Russia after only X5 Retail Group and Magnit.

The merger was followed with an appointment of Pletnev, an ex-development director and strategic director for Pyterochka supermarket format of country’s largest retailer X5 Group. Reportedly, Dixy and X5 have separately settled a non-compete clause in Pletnev’s contract with X5, allowing him to take the CEO position with one of the largest competitors. The new post-merger holding is controlled by owners of Dixy, Bristol, and Red & White, namely Igor Kesaev (Forbes-estimated fortune of $3.2bn), Sergei Katsiev ($1.3bn), and Sergei Studennikov ($850mn). Kesaev and Katsiev hold 51% in DBKR and Studennikov the remaining 49%.

Russia’s largest retailer X5 Group also focuses on digital solutions and develops online sales of its supermarket format. O’kay retailer also runs an online supermarket, while Magnit, Lenta, and Metro are collaborating with express delivery services.

www.intellinews.com

Russian Retail Market 2016

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In 2016, large retail chains grew: Russia’s largest retailers Magnit and X5 Retail Group each opened about 2,000 new stores. Some smaller chains, such as Novosibirsk grocery chain Avoska, Petersburg chain of farm products Girlanda and others, left the market.

A number of companies changed the top management. Alexander Barsukov was appointed a new CEO of Tander (Magnit). Sergei Belyakov replaced Elijah Yakubson as a new president of Dixi retailer, but then a few months later he was replaced by Pedro Manuel Pereira da Silva.

There are reports that Vernij retail chain is selling some of its stores. Although the company denies it, it turned out that a few shops were actually sold to X5 Retail Group.

Meanwhile, retailers explored new markets. For example, many federal companies were interested in opening stores in Grozny, and in February 2016 Lenta retailer opened the first supermarket in the Chechen Republic.

Globus announced that it was going to invest 9 billion rubles in the construction of a retail park near Moscow. Estimated construction period is 2015 – 2020.

Metro Cash&Carry presented a new concept of shops Fasol Express, located at gas stations. The company plans to double the amount of stores every year.

Finnish company Stockmann is leaving the Russian market and closing ten Lindex stores. According to company estimates, the losses amounted to about 78 million euros. Executive Director of the Stockmann was going to resign after the sale of the business in Russia.

In June, Igor Shekhterman, Executive Director of X5 Retail Group, told about the plans of chain development: two most important regions for X5 are Siberia, where it is planned to open 150 stores over the next two years, and South Russia . The first stores are located in Novosibirsk in the stores, previously belonged to Avoska, which was forced to withdraw from the market. The network consisted of 12 stores.

In order to start supplying products to new regions X5 will build new distribution centers. “We have opened 35 distribution centers so far, and we are planning to open around 27 more in five years” – said X5 Retail Group CEO.

In September, premium retail chain Azbuka Vkusa launched a project of biometric payments, now customers can pay by placing a finger on the scanner.

In September, Forbes magazine published the rating of the largest private companies in Russia. Magnit took the first place, followed by X5 Retail Group.

In late October, Kesko Food Russia Holding announced that it would sell 11 K-Ruoka stores in St. Petersburg and Leningrad region to Lenta retailer for 11 billion rubles.

Auchan announced that Atak stores would be rebranded into Auchan store in the next 1,5 year. Also, Auchan in Moscow intends to build the largest distribution center in Europe. The venue will strengthen the retailer’s position in the Central region. In 2017, Auchan plans to increase its investment by almost half – up to 30 billion rubles.

Okey owners, Dmitry Korzhev, Dmitry Troitsky and Boris Volchek, who owned 78.97% of the company, decided to sell their shares. Among the main buyers there are Auchan, Lenta and, according to unconfirmed reports, Magnit.

In December, one of the leading Russian retailer Dixie bought 12 stores from 7th Continent.

www.retail.ru

Russian retail: Ban extension will not change prices or assortment

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Extending the Russian food ban is not such a problem for local retailers, since for less than a year they was able to find a replacement for most banned products, according to a survey conducted by RIA Novosti.

In August 2014, Russia restricted imports of food products from the EU, USA, Canada, Norway and Australia. Meat products, fish, vegetables, fruits, dairy products were banned. In late June, the Russian government extended the ban until August 5, 2016, excluding from the list of oysters and mussels fry and banning import of all cheeses, tightening the rules for import of lactose-free dairy products.

General opinion of the retailers is that ban extension will not influence prices as the new network of suppliers has already built. Although other factors such as seasonality, currency volatility, inflation, regulatory changes may affect prices.

It can be noted that there is a larger assortment range of domestic products on the shelves. Maria Kurnosova, Director of External Communications of “Auchan” noted that the share of imported products is about 3%. In “Dixie”retail chain the share of domestic production is about 90%. The specific demand for imported goods remains, but this applies only to certain groups of products, such as alcohol or fruit.

www.ria.ru

Dixi revenue increases by 23.3% for six months in 2013

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For six months in 2013, the revenue of “Dixi” group of companies increased by 23.3% compared to the same period of the last year and amounted to 87.4 billion rubles.

Convenience stores “Dixi” sales increased by 53.5% to 66.5 billion rubles during six months 2013.

Meanwhile, sales of supermarket chain “Victoria”, that belongs to “Dixi” group of companies, declined by 38.5% to 12.5 billion rubles. The main reason of sales decline is the transfer of shops “Victoria” into the chain “Dixi”.

Hypermarket “Megamart” sales for the first six months of 2013 increased by 17.5% to 7.6 billion rubles. Hypermarket “Minimart” sales has reached 1.67 billion rubles, that is 25.2% more than during the same period of 2012.

For six months in 2013 “Dixi” has opened 133 stores and closed 25 stores. As of June 30, 2013, under its control there were 1,607 stores, including 1,496 stores convenience stores “Dixi”, 80 supermarkets “Victoria”, one store Cash and 30 hypermarkets “Megamart” and “Minimart”.

Source: www.retailer.ru

Second tier retail chains are leaving the Russian market.

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Second tier retail chains are leaving the Russian market, Sergey Galitsky, Magnit CEO, said during the telephone conference. Meanwhile the competition among top three retail chains – X5 Retail Group, Magnit and Dixi – will keep escalating. Sergey Galitski confirmed their plans to raise gross revenues in 2012 at 25-30%, and EBITDA – at 7.5-8%. Magnit is one of Russia’s largest retail chains in terms of sales volume. As of 31 December 2011, the company operates 5,309 stores, including 93 hypermarkets and 210 drogery shops.

Source: www.retail.ru