Russia's Magnit opens first 'hard discount' stores
Reuters
Published Feb 28, 2023 07:19
(Reuters) - Russia's Magnit supermarket chain launched its first "hard discount" stores under a new brand on Tuesday, the company said, as falling living standards and rising inflation push Russian consumers to search for lower-ticket items.
Magnit said the new "V1" - which stands for "First Choice" in English - brand will focus on basic products, including fruit, vegetables and bakery goods, carrying a narrower range of items than the chain's existing stores.
Russian shoppers have faced surging prices and falling incomes in the year since the Kremlin ordered tens of thousands of troops into Ukraine a year ago, hitting spending power and boosting demand for cut-price goods.
Discounters have posted strong results, attracting traditional retailers to the accelerating market.
Fix Price on Monday reported a 20.5% jump in revenue and a 27% increase in operating profit last year as Russians reined in their spending.
"Discounter stores remain one of the fastest-growing market segments and maintain high potential for future development," Anzhela Ryabova, Magnit's director of hard discounter format, said in a statement.
Magnit said it plans to open 15 pilot V1 stores in the Moscow Region "in the nearest future". The stores will carry dedicated private label items and display items in pallets or boxes, as well as being more dependent on technology, such as self checkouts, to keep costs down.
Magnit already operates another line of discount stores under its "My Price" brand.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.