Buffet reception (Ukraine)

"Buffet reception" integrates 108 shops in Ukraine and nine in Moldova. At the end of 2011 the network is included into the five of the largest retailers of Ukraine on a goods turnover. A loss of Buffet reception in 2011 — 4.25 million UAH, net income — 23.67 million UAH. The network does not publish the consolidated statements. The main owner of Buffet reception is Igor Balenko. About another 20% belong to the French network Auchan.

Development

The Ukrainian grocery chain "Furshet" enters the market of Georgia. As Kommersant knew, until the end of October its first shop in Tbilisi in partnership with the largest Georgian pharmacy chain PSP will open. The market of Georgia could not but interest the retailer as now there is almost no competition, experts note. However, they remind, Furshet almost does not develop in the native market and still did not restructure the debts to banks.

"Buffet reception" enters the market of Georgia, the member of the supervisory board of Buffet reception Alexander Yanishevsky told. Until the end of October in Tbilisi the first supermarket of network with a total area of 1.2 thousand sq.m which will be located near the Isani metro station will be open, the expert of the profile edition RetaiNet Alexander Lanetsky told. "I think, for half a year we will open three shops in Georgia, and we will look further as will go" — Alexander Yanishevsky noted. Mister Yanishevsky did not sound the investment volume into opening of business in Georgia. However market participants estimate investments at the first shop in $1.8-2 million.

It is curious that for Furshet Georgia company (regional division of Buffet reception) the HR department of PSP company was engaged in personnel recruitment — the largest pharmaceutical company in Georgia (integrates about 160 drugstores and pharmmarket). Alexander Yanishevsky told that Buffet reception really enters the market in partnership with PSP, but refused to specify what it consists in: 'A financial part of partnership, our with PSP, is not disclosed'. Alexander Lanetsky assumes that PSP could undertake financial risks in Georgia.

Experts note that investors and retailers are in the Georgian market actively interested recently. For example, the market was already entered by the Carrefour network, largest in Europe (in more detail — see the reference). According to mister Yanishevsky, Buffet reception wants to manage to occupy the niche in Georgia: "The market of product retail in this country is almost not developed".

In the report of Euromonitor it is noted that in Georgia the most part of sales falls to the share of product retail. "If in the developed countries people on average spend about 30% of the income for food, then in Georgia this indicator reaches 80%. Level of income of the most part of the population of the country just does not allow people to spend money for things", said in the report of the company. "This market rather small and rather liberal, but there is practically no organized product retail there. However, develop it can be profitable only in Tbilisi and Batumi" — mister Lanetsky notes.

Igor Balenko began the business in Georgia, and therefore it could have certain communications in this country, market participants say. "However the solution to come to this, let and perspective, the market now, frankly telling, surprises. The company in the last two years opened only several shops in Ukraine (in 2011 shop), i.e. it practically does not develop. Besides, Buffet reception still did not restructure the debt to banks" — the investment banker familiar with a situation in the company told. At the end of 2010 the debt of Buffet reception made $170 million. Mister Balenko in March of this year said that negotiations with banks still continue. "For this reason it would be correct to enter the Georgian market with the local partner. And presence in other markets in the future can make Buffet reception more attractive to investors" — Alexander Lanetsky added.

Links

Ukrainian Buffet reception will be unrolled in Georgia