“At the end of August, 11 more stores were opened in the region and we are planning to open 40 more discount stores here by the end of the year.” Also, two Chizhik stores were opened in both Chelyabinsk and Perm, informs the press-service of X5.
The chain already functions in 11 regions of Russia. X5 are going to continue their active expansion into the regions and logically point out a decline in real earnings of the population and problems with logistics for imported goods. By the end of the year, the plans are to open 400 stores around the country, twice the number of today.
Their range of goods lists about 800 items with 300 being CTM mostly produced by relatively small regional producers including Svetaevo, Verner, Shchedry God, Greenola, Axl, Tafo and others.
Online didn’t work
The number of orders and the money volume in online shops have been falling for the third month in a row. Based on the results of June 2022, the decrease was about 20% over the pandemic June last year. This is stated by the data of two largest agencies, INFOLine and Data Insight.
The online market was on a rise up to the spring this year. One could say that the current fall is not a panic reaction to the political events but rather a long-term trend. A lot of buyers are not wiling to pay for the delivery and full prices any more, as online shops of large supermarkets often sell at a price 3-5% higher than the offline shop price or do not offer discounts or special offers. INFOLine states that the online delivery market was 165 billion rubles for January — June 2022. While since June, the sales have fallen down to 132 billion rubles.
Based on the results, Data Insight has cut their forecast for online food sales by 22% to 549 billion rubles, even though at the end of May they were expecting the number to reach 704 billion rubles by the end of 2022.
The forecast for the number of orders has dropped by 19% from 476 million orders to 384 million, according to the June bulletin of E-grocery in Russia. Analysts say that an average spend is expected to lose 3% over the number of last year and drop to to 1430 rubles. A bigger decrease is not expected due to the inflation.
Where do we go now?
At first glance, the future of regional chains seems rather dull, yet as funny as it may sound the problems of shopping centres of any format being as empty as they are with foreign brands leaving the country may be the way out. Management companies may want to look into a rather popular European concept of one shopping centre — two supermarkets. This way, national chains will be able to cater for the basic consumer goods basket while small local chains will take care of gastronomy and freshly baked bread as well as bring in producers and farmers who otherwise cannot reach large players. Local authorities as well as big agricultural holdings too can support the local producers by taking them under their wing. Local brands or community brands will always have their fans who prefer to buy local. The sanctions should not be in the way of the development of famous regional chains, for example, Tabris from Kuban region is opening new supermarkets and hypermarkets and is not going to give up the local niche to national chains. A crisis can weaken a strong player but as for a weak one, if they are not killed, they become stronger.
special offers. INFOLine states that the online delivery market was 165 billion rubles for January — June 2022. While since June, the sales have fallen down to 132 billion rubles.
Based on the results, Data Insight has cut their forecast for online food sales by 22% to 549 billion rubles, even though at the end of May they were expecting the number to reach 704 billion rubles by the end of 2022.
The forecast for the number of orders has dropped by 19% from 476 million orders to 384 million, according to the June bulletin of E-grocery in Russia. Analysts say that an average spend is expected to lose 3% over the number of last year and drop to to 1430 rubles. A bigger decrease is not expected due to the inflation.
Where do we go now?
At first glance, the future of regional chains seems rather dull, yet as funny as it may sound the problems of shopping centres of any format being as empty as they are with foreign brands leaving the country may be the way out. Management companies may want to look into a rather popular European concept of one shopping centre — two supermarkets. This way, national chains will be able to cater for the basic consumer goods basket while small local chains will take care of gastronomy and freshly baked bread as well as bring in producers and farmers who otherwise cannot reach large players. Local authorities as well as big agricultural holdings too can support the local producers by taking them under their wing. Local brands or community brands will always have their fans who prefer to buy local. The sanctions should not be in the way of the development of famous regional chains, for example, Tabris from Kuban region is opening new supermarkets and hypermarkets and is not going to give up the local niche to national chains. A crisis can weaken a strong player but as for a weak one, if they are not killed, they become stronger.
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