Russian retail market

X5 Retail Group is developing discounter Kopeyka

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X5 Retail Group has begun to develop the brand of discounter “Kopeyka” instead of developing the same format under the brand name “Pyatorochka mini”. All seven discounters “Pyatorochka mini” were rebranded as “Kopeyka.”

Small supermarkets show the most dynamic growth in X5 Retail Group revenues. The company bought “Kopeyka” from “Uralsib” owner Nikolai Tsvetkov in the end of 2010. There were more than 600 discount stores. In 2011, the retailer decided what to do with the trademark, even considering the option of selling it, but in the end they began to develop it.

Now there are 20 stores in Moscow and the region. The average area of these stores is 200 square meters, number of products is 3,000-3,500.

Source: www.retailer.ru

Russia’s Magnit raises 2012 sales guidance

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Fast growing Russian retailer Magnit on Monday raised its full-year 2012 sales guidance to 30-32 percent from 30 percent and said growth was expected to slow down to 25-27 percent next year.

Magnit, Russia’s top grocery chain with more than 5,700 stores, also said its capital expenditure programme would total $1.6-1.7 billion this year and $1.6-1.8 billion in 2013.

This year’s margin on the basis of earnings before interest, taxation, depreciation and amortisation (EBITDA) is seen at 9.0-9.5 percent, the company said in a statement.

The company said in July it would keep expanding aggressively next year, with preliminary capex guidance at $1.8-2.0 billion.

Source: in.reuters.com

Dixy Sales Jump 61%

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Russian grocery chain Dixy has revealed that its January-August consolidated revenues surged 61.6% year-on-year to 94.2bn roubles (US$3.01bn), boosted by its merger with smaller rival Victoria just over a year ago.

Sales were up 21.6% on a pro-forma basis, including Victoria’s results from the beginning of 2011, Dixy said in a statement.

In August alone, consolidated sales were up 24.6% in rouble terms after a rise of 23.4% in July.

Source: www.kamcity.com

Billa expanding in Russia

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Austrian supermarket chain Billa, belonging to the Rewe Group, is busily engaged in the expansion on the Russian market and is therefore determined not to waste time. The goal is to open 10 to 15 new stores per year, the company reports.

Billa opened its first store in Russia in September 2004, in Moscow.

After this the chain expanded, opening 87 stores across 11 cities. 65 alone are in Moscow.

Since the beginning of 2012, Billa has opened 16 new stores in Russia, twelve of which are former Citystore supermarkets in Moscow and its surroundings, which the company has acquired from the supermarket chain Enka.

Source: www.freshplaza.com

“Land” supermarket chain is planning to grow

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Petersburg retail chain “Land” was opened in 1998, and by 2011 there were only 6 supermarkets. But in 2012, the retailer is launching two more stores. One (600 square meters) was opened on September 13, the other (1200 square meters) will be opened by the end of 2012.

Ilya Strom, CEO of the company, said during a press conference, that by 2014 the number of supermarkets in St. Petersburg will grow up to 13, and by 2016 – up to 18. This will allow the company to take up to 70% in the premium segment of FMCG market in St. Petersburg. Now, according to the company, its share is 54%. Market capacity is estimated at 10%.

Also, “Land” will expand into other regions of the country. The first store is planned to open in Sochi in the end of 2013 – beginning of 2014. “We are also interested in opening new supermarkets in other cities in the south of Russia, and in the Urals and Siberia. First of all, these are the cities with the population more than a million – Krasnodar, Yekaterinburg, Krasnoyarsk, Irkutsk, Novosibirsk”- said Ilya Strom.

Besides, “Land” is planning to enter the market of CIS countries. According to Ilya Strom, now the company is discussing the possibility of opening a supermarket in Finland. However, the exact launch date and the number of supermarkets were not named.

The average investment in opening one “Land” supermarket is from 1.2 million euros (500 sq m) to 1.8 million euros (1000-1500 sq m). The approximate payback period is five years. For the development the company uses both its own money and credit aid.

“Land” is also planning to increase its own imports and expand the range of imported products from the current 2,000 to 4,000 positions by the end of 2013. “Basically, we will continue to work with the producers in Spain, Italy and Finland. But we are also planning to start working with England and France”,- said Svetlana Andronikova, commercial director of the company.

Besides, now “Land” is negotiating with farmers of Leningrad, Pskov and Vologda regions to supply products in supermarkets. Part of the farm products will be sold under retailer’s brand.

Source: www.retailer.ru

Supply Chain Changes At X5

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X5 Retail Group Russia logoThe X5 Retail Grouphas reported some changes to its supply chain management. The Russian food retailer is to directly import and distribute a number of product categories into its stores. The group currently distributes mostly fresh produce and confectionary to its retail outlets. Importing goods directly will eliminate the need for a distributor and will improve the group’s gross margins and product quality, chief financial officer Kieran Balfe is reported to have said.

Source: www.esmmagazine.com

 

Auchan to Launch Drive Stores in Russia

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France’s Auchan hypermarket chain plans to launch its first Auchan Drive outlet in Moscow next year, where customers can pick up goods ordered on-line, Auchan Russia General Director Jean-Pierre Germain said on Tuesday.

The retailer is searching for a site of about 3,000 square meters for the store, Germain told reporters at a news conference on the tenth anniversary of the company’s activities in Russia.

Auchan also plans to open its first electronics store in Russia in September 2012. Customers will be also be able to order electronic goods on-line and pick them up in the Moscow-based outlet, which is likely to be named Electrodiscount.

Germain declined to specify any other details about the electronic goods store to Prime news agency.

The French retail giant, established in 1961, entered the Russian market in 2002. Auchan now manages 52 retail outlets in Russia and plans to increase the number of its stores to 150 to 2015-2017, Auchan Chairman Vianney Mulliez said.

The retailer has invested over 50 billion rubles ($1.6 billion) in its Russian business in the past ten years, Mulliez added.

Source: www.en.rian.ru

Auchan global plans

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By 2015-2017 the retail company Auchan Russia plans to increase the number of retail outlets up to 150 through the country. On 28 August it was reported by Vianney Mullen, president of the board of the French group Auchan; the press-conference was held in Moscow, at the 10th anniversary of the first Auchan supermarket in Russia.

There will be all the formats of Auchan – hypermarkets Auchan, hypermarkets Auchan City, Auchan Sad, Nasha Raduga (in cities with population less than 500 000 people).

French retailer Auchan has been on the Russian market since 2002. In the beginning of 2012 there were 36 hypermarkets Auchan, 14 Auchan City, 4 Auchan Sad, 2 hypermarkets Nasha Raduga.

Trade group Auchan was founded in 1961 by Gerard Myule, it consists of more than 1,300 stores in 12 countries.

Source: www.retailer.ru

X5 may not reach expected results

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Sales growth of the biggest Russian retailer X5 Retail Group would not reach previously expected 15 per cent, Kieran Balfe, chief financial officer, warned investors on a conference call. Earlier Balfe said that the growth rate would be about 15 per cent for this year – but for the first half of the year X5 revenues rose by only 7.2 per cent.

The sales in hypermarkets fell by 14 percent in July. Net profit of the retailer fell by 6.2 percent to $ 68.9 million. EBITDA decreased by 1.6 percent to $ 280.3 million.

Despite the fact that the X5 Retail these results are still not bad, they do not seem so so good if compared to the indicators of the Magnet, X5 main competitor, according to VTB Capital analysts. Magnit EBITDA profitability reached 10.1 percent in the second quarter.

Source: www.retailer.ru