Russia: Magnit will continue to open 'My Price' discounters
Largest European grocer (in store count) Russian Magnit continues to expand its Discount Retail Chain «Моя цена» (translated My Price) and plans to open 10 more stores in this format by the end of 2020.
The first three 'My Price' stores in Volgograd, Samara and Ulyanovsk regions were opened in the summer. According to Ruslan Ismailov, director of retail chain management at Magnit, two of them showed very good results following the pilot project. The third store required additional adjustments and is now reaching its sales targets as well. In total, by the end of 2020, it is planned to open ten stores in the discounter format .
“Those stores that we tested during the pilot project are located, relatively speaking, somewhere in the middle between active residential development and transport hubs. These are the points to which, as they say, you need to get. They were selected based solely on reporting results. Their results as convenience stores varied between average and average minus. We made a bet that shoppers would better perceive them in a new format. This is exactly what happened, since our new discount format offers a certain small SKU assortment range at lower prices. Now we are expanding this strategy to more stores,” Ismailov says.
According to the estimates the cost of opening a discounter is 5-6 times lower than the cost of opening a standard convenience store.
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