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Russia: New discount concept B1 opened already 55 stores

The by DRC co-developed discount concept B1 (part of Magnit Group of Companies) has already opened their 55th store.

The discounter chain plans to accelerate the pace of expansion and go beyond Moscow region. B1 operates according to the EDLP model (low prices every day without promotions), offering customers goods at affordable prices through deep optimization of business processes at the stores and in their logistics.

The format aims for consumers of all income levels. The average sales area of the B1 stores is about 350 square meters, the assortment is about 1 thousand items which cover the key needs of the customers. A special feature of the assortment is an expanded offer of fresh fruits & vegetables, fresh category goods, baked goods (own production), as well weighted goods, like confectionery, nuts and dried fruits, cereals, frozen vegetables & fruits, fish products, etc.

Another distinctive feature of B1 hard discounters is the use of modern technologies. For example, each store is equipped with self-service check-outs in addition to the usual cash registers.

Magnit launched the hard discounter format in February 2023. In October, the first B1 distribution center was opened. In December, the chain launched its own loyalty program.

Due to the peculiarities of the format, the mechanics that B1 uses to increase the loyalty of its customers differ from the usual ones operating in most chains. Also in December, the first private label products appeared on the shelves of B1 stores. The chain will continue to launch new own brands in various product categories and plans to increase the share of private labels up to 50% in the assortment structure in the future.

"In less than a year since the launch of the B1 hard discounter format, we have opened 55 stores in Moscow and the Moscow region, and launched the chain's first distribution center", says CEO, Anzhela Ryabova. "We have tested many hypotheses in the field of commercial processes and locations, made mistakes, corrected them, and now we are ready to move on".

"In 2024, we plan to open several hundred new stores and enter new regions," said Angela Ryabova.

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