Smart (discount store chain)

History

2021: Launch of a chain of stores with goods at low prices

At the end of May 2021, it became known about the upcoming launch in Russia of a chain of stores with goods at low Smart prices. This project is being carried out by Spar Middle Volga, which develops supermarkets of the Dutch Spar chain under the franchise.

According to Kommersant, a search has already begun for premises for a new network of discounters in Moscow and the Moscow region with an area of ​ ​ 700 square meters. m and 1000 square meters. m, respectively.

According to Mikhail Burmistrov, CEO of Infoline Analytics, Spar Middle Volga's investments in developing a discounter project, adapting its own brand portfolio (STM) and opening the first two pilot stores will amount to about 50 million rubles.

Spar launches a chain of low-priced stores in Russia

The expert noted that the market of Moscow and the Moscow region is very competitive. The main problem is the lack of suitable locations at low prices. The head of the CBRE trading premises department, Marina Malakhatko, added that the lack of premises is largely due to the discrepancy between the expectations of owners and operators at the rental rate and the discounter's ability to pay it.

Almost all the largest networks have already launched their own discounters, including X5 Retail Group (Pyaterochka, Perekrestok, Karusel), which develops the Chizhik, Magnit (My Price) and Lenta (365 +) network.

The economics of discounters may be more complex than those of stores with ordinary prices, warns Alla Yurova, an analyst at the National Rating Agency. She refers to the data of O'Kay Group of Companies, which according to the results of 2020, the EBITDA margin of discounters "Yes!" Was 3%, which is three times less than that of hypermarkets.

By the end of May 2021, the Spar network is represented in 12 regions in Russia. In total, more than 200 supermarkets of the chain have been opened in the country. Stores operate under the signs of Spar (everyday products), Eurospar (large supermarkets for family purchases), as well as Spar Express and Eurospar Express of a small format.^[1]

Notes