The owner of the Pyaterochka trading network X5 Retail Group thought about the launch of economy segment stores. This is referring to sources on the retail market writes “Kommersant”.
According to them, the range of cheaper “pyters” will reduce the range, but the format will develop separately from another X5 project – Chizik discounters.
As noted in the material, to experiments with formats, trading networks pushes the fall in income of the population and poverty growth. Retailers are forced to adapt to these circumstances not to lose customers.
In X5, they explained that Pyaterochka will not switch to the discharge of discounters, however, store formats will be revised depending on geography and consumer requests.
Josdevries The Retail Company Consultant Irina Bolotova suggested that they reformat those stores where the revenue does not reach the planned financial indicators. In turn, Olga Sumishevskaya partner noted that the abbreviated range would reduce the operational costs and, accordingly, prices. In her opinion, the main task of the company is to keep buyers, but at the same time not to spoil the perception of the brand.
According to Rosstat, in the first quarter of this year, real disposable revenues of Russians fell by 3.6 percent. According to the Institute of Developing Economics, Finland Bank, this is a record low since 2009. In such circumstances, the largest trading networks are actively entering the discounters segment, as well as we are looking for ways to reduce costs.
So, “Magnet” by the end of the year intends to open about a hundred stores under the brand “My price” with low prices, and the “tape” tests stores “365+”. At the same time, both retailers simultaneously announced the purchase of competitors in order to improve financial indicators. Under the control of “Magnit” a network “Dixie” will go, and “Tape” will buy “Bill Russia”.