Dixy

Dixy Group of Companies (MICEX: DIXY) is one of the Russian companies in the retail trade in food and consumer goods. The company specializes in the development of general retail stores of the "shop at home" format in Moscow, St. Petersburg and in three federal districts of the Russian Federation: Central, North-West and Ural, as well as in the Kaliningrad region, which in total make up more than half of the retail market for food and consumer goods in Russia.

Illustration: realty.interfax.ru

Performance indicators

2023: 3.1% decrease in revenue to RUB 283.58 billion

At the end of 2023, the revenue of the Dixy food retail chain amounted to approximately 283.58 billion rubles. For comparison, a year earlier this figure was 292.69 billion rubles. Thus, a drop of 3.1% was recorded. This is stated in the financial report published on May 15, 2024.

It is noted that the number of checks from Dixy in 2023 was at around 674 million. This is 7.1% less compared to 2022, when there were 726 million checks. At the same time, the average amount of the check on an annualized basis increased by 4.3% - from 403 rubles to 421 rubles. As of the end of 2023, the Dixy chain combined 2,235 stores against 2,208 outlets in 2022 (an increase of 1.2%). During 2023, 79 Dixy stores were opened and 52 were closed. The total trading area reached 739 thousand square meters against 719 thousand in 2022.

source = Dixie

In 2023, a large-scale project was launched to update the concept of stores near the Dixy house: the organization of the retail space and the appearance of retail outlets will change. A greater focus is planned on ready-made food, instant foods, products for a healthy lifestyle without gluten and lactose. The range of products from local producers and farmers will be expanded.

In addition, in 2023, stores near the Dixy house launched a reverse franchise program. The cooperation scheme provides for full support from the company of individual entrepreneurs and legal entities acquiring a franchise (franchisees) in all areas of launch and operation of retail outlets. The reverse franchise allows businesses to open stores under the Dixy brand in full compliance with retail network standards in almost any traffic locations in the regions where the company operates, minimizing potential risks as much as possible and competently building business processes.^[1]

2017: Revenue of 282 billion rubles

As at 31 December 2017, the Group operated 2,703 stores, including 2,534 DIXY convenience stores, 128 Victoria stores and 41 Megamart and Minimart compact hypermarkets; DIXY Group stores operate in 753 cities and settlements in the Russian Federation.

The geography of the Group's operations covers four federal districts of Russia: Central, North-West and Ural, as well as Kaliningrad and Kaliningrad regions.

In 2017, the total revenue of the DIXY Group of Companies reached 282 billion rubles.

2016: Revenue of RUB 311 bn

In 2016, the total revenue of the DIXY Group of Companies reached 311 billion rubles. Shares of PJSC DIXY Group have been traded on the Moscow Exchange since 2007.

As of December 31, 2016, the company managed:

• 2,802 stores, including 2,646 near-home DIXY stores,
• 116 Victoria stores and
• 40 compact hypermarkets "Megamart" and "Minimart."

DIXY Group stores operate in 778 cities and settlements in the Russian Federation.

History

2023: Employee database leaked

On February 20, 2023, it became known about the leakage of data from Dixy employees. It was reported by the profile Telegram channel Data1eaks.

According to him, the hacker, who previously hacked the systems of the ZdravCity online pharmacy and the official store of the Puma brand in Russia, put up for sale on an English-language forum for lovers of database leaks of employees of the Dixy chain of stores. The file contains 66,150 records, including such information about the retailer's employees as:

• FULL NAME;
• Paul;
• Date of birth;
• Telephone;
• E-mail (mainly on the corporate domain);
• Password in hash;
• Place of birth;
• Some facts of biography;
• Some technical details.

66,150 records from Dixie databases were merged

As Data1eaks notes, the database is relevant as of January 8, 2023. The Telegram channel also said that a database of employees of the Bristol chain of stores was put up for sale, which includes more than 38 thousand records.

On February 22, 2023, the Magnit company, which owns the Dixy network (has about 2.5 thousand outlets throughout Russia), announced that it would check information about the leakage of data from the retailer's employees.

Roskomnadzor will check information about a possible leak of Dixy's personal data, but there has been no notification of what happened from the companies, the press service of the department told RIA Novosti on February 22, 2023. The regulator recalled that according to the law, companies must notify Roskomnadzor within 24 hours after the incident.

On September 1, 2022, amendments to the law "On Personal Data" came into force, according to which the operator who leaked the data will be obliged to independently report the incident to Roskomnadzor within 24 hours, and within 72 hours to submit to the department the results of an internal investigation indicating the cause and perpetrators.^[2]

2021

Magnit will pay 97 billion rubles for the acquisition of Dixy

On September 1, 2021, it became known that Magnit would pay almost 10 billion rubles more for the acquisition of Dixy than it planned. The change in the value of the transaction was approved by the board of directors of Magnit.

According to Interfax, citing Magnit's statement, the purchase price amounted to 97 billion rubles instead of 87.6 billion rubles at the time the deal was closed. The adjustment relates to changes in net debt and working capital in line with the closing statements, as well as other transaction terms governing value adjustment, the retailer explained.

Magnit will pay 97 billion rubles for the purchase of Dixy

The perimeter of the transaction included 2477 Dixy stores (2438 thousand near-home stores and 39 superstores Megamart). This is 174 stores less than planned in May 2021, due to the closure of some stores and the opening of new ones before the completion of the transaction. In addition, 148 outlets were excluded from the deal perimeter due to prescriptions FAS and market share thresholds. The first price adjustment was, in particular, associated with a change in the number of stores.

The Federal Antimonopoly Service (FAS) of the Russian Federation approved the deal on July 15, 2021. A week later, it was closed.

Later, Magnit clarified that the average quarterly zero mark-up will be set "for one commodity unit of the low price segment in each of the following categories of goods: milk, bread and chicken meat." Magnit will keep it throughout the network for a year from the date of completion of the transaction. Due to the FAS order to limit the share in some areas, the company may close a limited number of stores.

The Dixie business is expected to continue to function as a separate legal entity, and stores to operate under existing brands. As part of the deal, Magnit also acquired five distribution centers and more than 700 trucks.^[3]

Magnit buys Dixy for 92.4 billion rubles

On May 18, 2021, Magnit announced the purchase of Dixy at a preliminary price of 92.4 billion rubles. The deal will include 2612 Dixy stores, as well as 39 outlets under the Megamart brand.

The total area of ​ ​ redeemable stores will be 854 thousand square meters. m, of which 778 thousand square meters. m falls on convenience stores. In addition, Magnit will acquire five more distribution centers with a total area of ​ ​ 189,000 square meters. m. Magnit operates more than 21,500 stores, of which 14,900 are in the "at home" format.

The press release cites the words of the head of Magnit, Jan Dunning, who emphasizes that the company is still going to increase its presence in Russian regions by opening new stores. However, the acquisition of outlets from competitors also fits into the development strategy.

Magnit acquires Dixy for 92.4 billion rubles

According to the press service of Magnit, the agreement was approved by the board of directors of the company, it is expected to agree on a deal with the Federal Antimonopoly Service (FAS). As expected, the deal will be closed on August 31, 2021, they took another month to force majeure, until September 30. The transaction is expected to be financed by Magnit's cash and available unused credit lines.

The sale of Dixy may be related to the desire of partners in Mercury Retail Group to focus on the development of the Red & White and Bristol networks, a source familiar with the details of the transaction told RBC.

The purchase of Dixy could seriously narrow the gap between Magnit and X5 Retail Group, which by May 2021 is overtaking all its competitors in terms of trade turnover and Russian market share. Until 2017, Magnit was in first place in these indicators, but then missed the lead.

After the announcement of the deal with Dixie, Magnit shares rose 4.5%.^[4]

2020: Start selling products on the marketplace

In March 2020, major food retailers Dixy and Metro began selling through marketplaces: the first connected to the Ozon online store, and the second to Beru.

Dixy noted that from March 11, 2020, you can buy groceries, confectionery, preservation, coffee, tea and household chemicals on the Internet site. Later, the retail network plans to bring products for children, animal products, cosmetics and its own trademark to the Internet site. The retailer also plans to launch seasonal offers on Ozon - school stationery, Easter sets, jewelry and gifts for the New Year.

Large food retailers Dixy and Metro began selling through marketplaces: the first connected to the Ozon online store, and the second to Beru

According to Vedomosti, before Dixy "sold its goods only in offline stores. And Metro already has its own online store (its work is provided by Sberbank Market), it also works with food delivery services, for example, iGooods.

According to a Dixy representative, the company expects that thanks to a partnership with Ozon, its goods will be available in 6,500 settlements in Russia. According to a representative of Beru, Metro will also expand its audience thanks to sales on its site, and Beru itself is expanding its range of consumer goods. The cooperation will allow Metro to increase Internet sales, including in regions where the network cannot independently deliver goods.

Ozon Business Development Director Elena Shulgina says that consumer goods have become one of the fastest growing categories on the company's site: at the end of 2019, the turnover from their sales increased 2.4 times, which is 3.5 times faster than in Russian e-commerce as a whole.

The second largest retailer in Russia - Magnit - by March 11, 2020 is considering both the opening of its Internet site and partnerships with delivery services and marketplaces.^[5]

2017: TAdviser interview with Chief information officer Vladimir Muravyov

Logo in 2018

In November 2017, Vladimir Muravyov, Chief information officer of Dixy, spoke in an interview with TAdviser about the company's IT strategy and priorities, new technologies in retail and investments in startups.

2015: Belyakov Sergey Sergeevich appointed CEO of the company

On December 21, 2015, the Board of Directors of the Dixy retailer appointed Sergei Belyakov as president instead of Ilya Yakubson^[6]

2014: No. 4 for food sales in Russia

In 2014, Dixy, owned by Igor Kesaev and Sergei Katsiev, co-owners of the largest cigarette distributor in Russia, Megapolis, managed to overtake German Metro Cash & Carry Russia in revenue for the first time, according to Infoline data. Dixy in previous years ranked fifth in the ranking of the largest Russian food sellers, but by the end of 2014 it was already in 4th place and second only to market leaders - Magnit, X5 Retail Group (Pyaterochka, Perekrestok and Karusel chains) and Auchan.

The Dixy group has been in the top 5 since the acquisition of Victoria Group of Companies in 2011. The task of entering the major league of Russian retail has long been fulfilled, says Ilya Yakubson, president of Dixy Group of Companies. "But, of course, the fifth always seeks to overtake the fourth, and we are glad that in 2014 we finally managed to do this," he rejoices. The gap with Auchan in revenue is almost two times. There is no goal to overtake a competitor, Yakubson admits: "The goal is profitable business growth."

Dixy's sales growth in 2014 accelerated to 27% versus 22% in 2013. Metro's revenue grew twice as slowly as Dixy's - by 13%, Infoline Dixy calculated^[7].

Dixie is set to double last year's revenue by the end of 2017, Yakubson said.

"In the medium term, we will continue to open stores in the regions where we are already represented, as well as expand the map of presence in the territories that can be served through the current structure of the distribution centers of the network," the top manager added.

In 2015, the Dixy chain will grow by 500 stores, thus increasing by 20%.

The situation in 2014 was in favor of discounters and convenience stores, says Infoline CEO Mikhail Burmistrov. After the food embargo and the devaluation of the ruble, consumers are forced to save. And therefore they switch from off-grid retail and small chains to larger and more competitive discounter chains, Burmistrov continues. By the end of 2014, this became especially noticeable: December sales of Dixy convenience stores jumped 39.1%. Among the main competitors in this format - Magnit and Pyaterochka - revenue also rose sharply in December, and hypermarket chains recorded a decrease in growth rates, some - and an outflow of customers.

2011: Acquisition of Victoria Group of Companies

2011 - Acquisition of Victoria Group of Companies. As a result, DIXY Group of Companies ranked third among national retail operators in terms of turnover, retail space and number of stores.

2010: Centralization of operations

2009-2010 - Centralization of operations, company-wide implementation of a new IT system for supply chain and inventory management.

2008: Mercury Group acquires 51% of Dixy

In 2008, Mercury Group acquired a controlling stake (51%) in Dixy.

2007: $360 million IPO in Russia

In 2007, an initial public offering (IPO) of Dixy shares took place at the Russian RTS and MICEX sites, during which $360 million was raised.

2006: Consolidated revenue exceeded $1 billion

At the end of 2006, consolidated revenue exceeded $1 billion.

2005: The first economical supermarket "Minimart"

In 2005, the first Minimart store of the economical supermarket format was opened in Yekaterinburg.

2004: Foreign investors

In 2004, a group of foreign investors entered the capital - private equity funds Citicorp International Finance Corporation, Cube Private Equity and Van Riet Capital.

2002:75% of revenue comes from retail. 77 stores

In 2002, retail accounted for about 75% of revenue - the number of stores reached 77.

1999: Dixy's first discounter in Moscow

1999 - Opening of the first DIXY discounter store in Moscow.

1992-1998: Wholesale and Distribution

Establishment of a company specializing in wholesale trade and distribution in St. Petersburg. The company became the first exclusive distributor of products of a number of international brands in Russia, including Unilever, Henkel, Schwarzkopf, Wella and others, occupying more than 30% of the Russian wholesale market for perfume and cosmetic products, and also acquired the status of the largest importer of food in the North-West region.

Notes