Intertorg Closing its Supermarkets in St. Petersburg and Other Cities

In St. Petersburg and the Leningrad region, some of Spar and Semija supermarkets were closed. The management of the retailer decided to close 37 unprofitable stores, 20 stores in St. Petersburg, 11 in the Leningrad region, 3 in Murmansk and 3 the Murmanks region and in Petrozavodsk. In summer and autumn, the stores in Cherepovets, Velikij Novgorod and other smaller cities were closed.

At the beginning of October 2019, Intertorg managed 249 supermarkets Semija, 8 supermarkets Idea, as well as 184 supermarkets and 11 hypermarkets of the international brand Spar, which Intertorg is developing under franchising.

The volume of claims against Trading House Intertorg doubled in a month – up to 1.8 billion rubles.

The retailer problems can provoke a massive default of medium and small distributors.

www.fontanka.ru, www.ftimes.ru

 

Retailer Prisma and Intertorg company to merge purchasing departments

The company Prisma, owned by Finnish holding S-Group, and the company Intertorg in the North West region of Russia (retail chains Narodnaya 7Ya, Idea and Spar) are going to combine purchase departments. First of all, it concerns the essential commodities. Retailers believe that development plans on cooperation will keep the profitability of the business, as well as diversify the range of products.

www.retailer.ru

X5 retail group acquires 100% stake in Spar Retail from A&NN investments ltd

X5 Retail Group, a leading Russian food retailer, and A&NN Investments ltd, one of biggest privately-owned investment groupings, announce the acquisition by X5 Retail Group of 100% stake in SPAR Retail, owned by A&NN Investments Ltd. SPAR Retail operates 26 stores (previously – under the “SPAR” brand) in Moscow (11), Moscow Region (7) and Vladimir (8). The transaction has been approved by the Russian Federal Antimonopoly Service.

The average selling space of the acquired stores ranges from 400 sq m to 1,600 sq m. The majority of the acquired stores will be integrated into the “Perekrestok” supermarket format, with only a few stores to be rebranded as “Pyaterochka”.

The Company currently operates 1,300 Pyaterochka proximity stores and over 200 Perekrestok supermarkets in Moscow and the Moscow Region as well as 12 Pyaterochka stores in Vladimir.

Organic growth remains the key growth priority for X5. At the same time, the Company does not rule out the possibility of opportunistic local acquisitions to the extent they add value to the business, are in line with the Company’s strategy and its management and financial capacities and do not negatively impact X5’s on-going operations.

www.eprretailnews.com

Azbuka Vkusa will buy SVA Trading

Moscow premium retailer “Azbuka Vkusa” will close a deal and buy the company “SVA Trading” (owned by Sergei Inozemtsev and his partners) in February 2014. Right now “SVA Trading” is a business owned by “SPAR”.

Early last week, “Azbuka Vkusa” has received an approval from the Federal Antimonopoly Service of Russia to purchase eight “SPAR” stores, a warehouse and manufacturing facilities. The total shopping floor space of the stores accounts for 10.1 thousand square meters. However, the company doesn’t hurry to make a purchase. “In December, during the peak season, the absorption of another business can be too much for the company,” – said a top-manager of the company.

Right now the deal value is undisclosed. Earlier it was stated that “SVA Trading” assets were worth $ 85-105 million.

“Azbuka Vkusa” plans to operate “SVA Trading” stores under its own brand within 3 months after the deal is closed.

In 2014 “Azbuka Vkusa” will expand its chain of stores by at least 20 new joints (including eight “SVA Trading” stores). The opening is planned to be conducted in Moscow, Moscow Region and St. Petersburg.

www.retailer.ru

Russia confirms itself as a key market for Spar

Spar International strengthened its position in Russia with the signing of a license agreement with two local partners: Anix and the Semya Group. The first operates in the region of Altai, while the second is in Kaliningrad.

With these two new partnerships, the multinational totals five new distribution partners in the Russian market in the last twelve months. Apart from the two regions previously mentioned, Spar has also reached the provinces of Tyumen, Irkutsk and Tomsk this year.

Additionally, the company has confirmed that its partner, Spar Retail, which operates in the Moscow area, will invest 20 million Euro in a plan to reform and expand its 27 facilities with the aim of strengthening the Spar brand positioning in fresh food and customer service.

Spar Group sales in Russia grew by 21 % in 2012 amounting to more than 1,130 million Euro. By the end of July, the turnover of the company had grown more than 18 %. Numbers that make the Russian market one of the most important markets for the brand.

Spar, which came into Russia in 2001, currently has 13 local partners and operates over 300 stores, including supermarket, hypermarket and convenience stores.

www.freshplaza.com

“Spar Retail” has problems

Victor Balashov, director of “Spar Retail” (retail chain Spar), leaves the company after eight months of work. According to the market experts, Mr. Balashov has difference in opinion with major shareholder of the chain – Alexander Mamut’s Fund A & NN Capital Management. Industry experts estimate the state of the “Spar Retail” as critical and recommend to declare bankrupt. Alexander Mamut owns 61% of  “Spar Retail” (through A & NN Capital Management Fund), Russian Retail Growth Fund owns 36%, and Dmitry Maslov, ex-CEO of the company, has 3%.

Now there are 24 Spar stores. The main idea was to create an ideal supermarket for upper middle class, supermarkets were to occupy a vacant palce between the “Perekrestok” format and premium networks “Azbuka Vkusa” and “Globus Gourmet”. But the idea failed. According to some market analysts, although the revenue of the chain is 6.3 billion rubles, «Spar Retail» does not cost more than 2 billion rubles, without considering its debts, which are about 6 billion rubles.

Source: www.retailer.ru

Spar to launch premium format

Spar Retail – one of the Russian partners of the Dutch Spar grocery retail concern – is planning to open stores in a new premium supermarket format. The concept is ready, and, if it is approved, the Spar first premium class store will open in the Moscow region by the end of 2013. It will operate on a trading space of 600 m2.
Today, the main business of Spar Retail, which now operates in the middle-plus bracket, is represented by 24 outlets in Moscow, the Moscow Province and Vladimir. Each of the stores takes up about 600 m2, and the largest variation – more than 1,000 m2.
In Russia overall, the Spar brand is developed by 11 partners: Spar Retail, Spar Middle Volga, Spar Tula, Spar Vostok, Spar Chelyabinsk, Spar Komi, Spar Severo-Zapad, Spar Tyumen, Spar Krasnoyarsk, Spar Irkutsk and Spar Tomsk.
According to Kommersant, in 2012 the premium subdivision of the retail market in Moscow generated sales worth more than $5bn.

Source: www.russiaretail.com

Fresh Foods Russia 2012: Results

The 3d Business Forum – Fresh Foods Russia 2012: Fresh products and ready-to-eat food  in modern retail networks – was held at Borodino hotel on 22-23d of November.

Fresh Foods Russia is the only business event in the country, bringing up to light the questions of quality and assortment of fresh products, purchase and storage, organizing of in-house manufacture, and also fresh and ultrafresh products as the main weapon in networks’ competition for the buyer.
More that 250 participants from 50 different cities and countries, including Ukraine, Belorussia, Moldavia, Italy, Spain and France discussed how to satisfy the growing demand and requirements of a consumer to the quality of fresh products, how to make the trading space look “tasty”, fresh and effective, how to provide marginality of sales, and make the supply chain steady during season  hesitations, and other up to date issues.
Traditionally, before the opening of the forum, a press-conference was held, on “Russian consumer in search of fresh and eco-products. The readiness of retail networks and producers to deliver quality and safety of fresh products, as well as their certificates”.
In discussion of the general vision of “fresh” and “eco” categories, Alexander Konovalov noted that today the notion of “eco products” is not yet legitimated, and a new law regarding organic agriculture is being developed in the Government. Alexander also added that by the results of 2012 the volumes of “eco” market will compose 100 mln $, only 15% of which is a share of Russian manufacturers.
In the session “Figures and facts” the leading analytic agencies presented their reports about the development of fresh food category. Among the main trends the experts noted an average growth of money which households spend on fresh categories and house brands. Sergey Yashko, vice General Director if GfK Rus, presented the following observations: almost 60% of all expense by the consumer are spent on fresh products; the share of fresh products purchase in traditional trade channel is higher then in contemporary channel: in traditional trade the consumer’s basket is shifted towards such categories as meat/fish and vegetables/fruit, and in contemporary channel – to dairy categories; 27% of all food shopping made by Russian families consist of fresh products exclusively, and the most actively developing is the segment of cooled/fresh fish (+28%). The main contribution to this growth was made by the traditional trade channel (+31%).
The opening of the Forum was a plenary session called “Where to get quality?!”, that took place in the big hall of “Borodino”. Market leaders: Belaya Dacha, Globus Gourmet, RusProdSoyuz, X5 Retail Group, Akort, Ecocluster – raised the problems of qualityof fresh products, and the possible ways of handling them through regulating the market and relations between suppliers and retailers, and development of logistics and systems of storage and manufacturing.
Speaking about quality, Nikolay Vlasov, vice president of RossAgroSurvey, expressed an opinion that the requirements to certification of products on the judicial level should be as light as possible, in order not to break the rules of competition. The networks in their turn should have an ability to certify the production additionally. Unfortunately, as notes Mr.Vlasov, the current  legislation does not imply any responsibility for giving untruthful information in this sphere, which makes the process of fight with unfair market members ever more difficult.
During the first plenary session, the companies shared their plans for the future, in particular, – Belaya Dacha will launch a plant in Saint-Petersburg, and plans to construct a manufacture in Rostov region – informs Victor Semenov, the founder of the company. Globus Gournet network is regarding proposals for opening new shops not just on the territory of Moscow and Saint-Petersburg, but also considers attractive such regions as: Ekaterinburg, Novosibirsk, Rostov-on-Don, Krasnodar and Sochi.
Among the main topics of the two days of the business-forum the delegates pointed out the following sessions: “Perspective technologies in supplies management (takeover, transhipment, quality control and logistics of fresh and ultrafresh; safety management for products); “Sales concepts of ready-to-eat food (Food-to-go bistros and other formats of trade organization inside the trading hall)”; “Fresh is not a mere gift – how to manage the marginality level”; “Staff that makes products tasty for consumers”; “Development of a private manufacture in a shop (system of kitchen-factory work)”.

The second day of the program was opened by the commercial negotiations of supplies between purchase leaders of retail networks and manufacturers in categories “Fruit/vegetables”, “Dairy”, “Meat/fish/poultry”, “Bread and Bakery”, and also between suppliers of equipment and products for private manufacture, and Heads of Self-produced food Departments in retail networks. The participants of negotiations were: Dixi, Spar Central Russia, Metro Cash&Carry, Vernyi, X5 retail Group, Hyper Globus, TZS System, Bakhetle, O’KAY, Myasnov, Titan, Continent of Taste, Food House, Proviant, Partner-Market, Anix, Palace row, Krasnyi Yar, Makarovskyi, Holiday Classic, Smak, Rost, Horizon, Comandor, Slata, Spar Middle Volga, Lentorg, Gulliver, Karavay, Lama, Molniya (SPAR Chelyabinsk), Guarant of Taste, Soyuz, Svetlyachok, Yelisey, KAK RAZ, Taste House, Telex, Radezh, Intertorg (National Family, Idea, Spar), Kulinarium, RegionMart System (Polyana, Chibis), Samberi, Ukrainian Retail, South Central Prod.
A special Surprize for the Forum delegates were business-trainings: how to control oneself, how to control one’s negative feelings, how the mood influences one’s relations and subordinates – these are the skills that the members could learn at the personal growth workshops. Timur Yadgarov , Head of Leadership Board in High School of BBCG and Vyacheslav Frolov, founder and director of “Business theatre” at MAAT studio school, shared their practice and psychological skills of self-presentation, necessary in the hard job of top-managenent.
Fresh Food Russia 2012 Forum was closed with the speech of special guest Tom Wolf, a world-famous food designer and chief cook, one of the most famous food designers in the world, and founder of  London catering company Blue Food Productions, organizing creative fourchets for celebrities and world premieres, such as “Pirates of the Carribean” and “Alice in Wonderland”. Progressive thinking, new solutions for restaurant areas in supermarkets, and a creative approach to food raised acute interest among the retailers. But few members of the market are now ready to implement such brave ideas in Russian retail yet.

Source: www.fruitnews.ru

Spar to Launch New Format in Russia

International retailer Spar, operating in Russia since 2000 in the “Soft franchising” mode, is launching new format.

The first 5,000 sq m hypermarket under Spar brand will be opened in Chelyabinsk on 3 December 2011.

At the moment Spar stores all over the world have 4 main formats: convenience store Spar, supermarket Eurospar, hypermarket Interspar and Spar-Express shops, which can be found in airports, railway stations and gas stations. The Spar retail chain in Russia is totaling 265 stores, mainly supermarkets. Spar-Express, Spar-drugstore and Spar-Pizza are also present on the Russian market.

There are 8 independent licensees in Russia, who are entitled to open Spar stores and develop a chain of sub-licensees within their region.

Source: www.retail.ru

SPAR to Develop in the North-Western Region

The SPAR International company, which operates the supermarket chain Spar, has concluded license agreement with trade house Intertorg (supermarket chains Narodnaya Semya and Idea). Under this agreement TH Intertorg receives an exclusive right to operate supermarkets under the brand Spar in the North-West of Russia, including St. Petersburg and Leningrad Region, the Republic of Karelia and Petrozavodsk, Pskov and Pskov Region, Vologda and Vologda Region, Velikiy Novgorod and Novgorod Region. Spar will be consulting Intertorg on marketing, logistics, HR, sales and other issues.

Spar – is one of the world’s largest retail chains, operating 16,000 supermarkets in 34 countries. It entered the Russian market in 2000 and has already opened 244 supermarkets since then. Intertorg is planning to open the first supermarket under the Spar brand in summer 2011.

Source: www.retail.ru