Russia: Fix-Price Group opens 4,000th store and plans IPO
Discount Non-Food Retail Chain Fix Price Group has announced that it has opened its 4,000th outlet in the country in Buzuluk in the Orenburg region.
The store offers a wide range of products at six fixed price points of RUB50, 55, 77, 99, 149 and 199 (US$ 0.66, 0.72, 1.01, 1.30, 1.95, 2.61). The assortment extends across more than 20 categories, comprising primarily non-food items, cosmetics and household chemicals, as well as a selection of food products.
The 13-year old company, known for offering in-demand and essential goods at affordable prices, constantly upgrades its product assortment and introduces around 40 to 60 new SKUs in its stores every week. The company saw its like-for-like sales rise by more than a fifth (+20.6%) in the third quarter of its financial year, boosted by a 15.9% in like-for-like average basket size.
'Efficiency-Focused Business Model' Fix Price CEO, Dmitry Kirsanov, commented, “Despite challenging market conditions and global headwinds, Fix Price is continuing to deliver strong operational performance and actively expanding its presence both in Russia and beyond. “Our efficiency-focused business model and the deep expertise of our highly qualified management team enable us to easily scale up our network and open new stores with relatively low capex, which is a solid foundation for the Company’s further growth and future expansion not just in Russia but also abroad.” The company opened around 488 stores since the beginning of this year. The retail chain is present in 78 of the 85 regions of Russia and is expanding its network in Belarus, Kazakhstan, Uzbekistan, Georgia, Latvia and Kyrgyzstan.
Retail chain Fix Price is considering an initial public offering (IPO) in the first half of 2021. Earlier this year, the company secured the support of the investment bank Goldman Sachs Group Inc.
Fix Price is currently exploring the possibility of listing on the London and Moscow stock exchanges. According to Bloomberg interlocutors, the retailer expects an estimate of about US$ 6 billion.
In an interview with the publication, the founder of Fix Price explained the growing popularity of fixed-price stores in Russia. “Due to the decline in income, consumers are trying to avoid shopping in large supermarkets, where you never know how much money you will ultimately spend,” said Sergey Lomakin.