Retailer trimming store's square footage
Whoa, let's dive into the latest shake-up in the Russian retail scene!
In Q1 of 2025, "Vkusvill" took a hit, with a whopping 10.5% decrease in stores – the highest reduction among major retailers. You might wonder why – well, it turns out they needed to close some unprofitable locations. Experts are suggesting a change in strategy for the network, with a focus on online sales becoming more prominent.
According to Infoline, "Vkusvill" slashed its trading points by 238 stores, a contrary move compared to the previous year when they opened 123 new stores, resulting in a 6.8% year-on-year increase. But fear not, they're still expanding in other parts – they currently have over 500 new stores across Russia.
Michael Burmistrov, from Infoline-Analytics, agrees that "Vkusvill" has been aggressive with store openings. However, he highlights a reverse trend in Q1 of 2025. Olga Sumishhevskaya, from the consulting company One Story, points out that "Vkusvill" is dedicating more resources to developing its online channel, which makes up nearly half of their total sales. In this digital-focused approach, the retailer is reportedly increasing the number of 'dark stores', up 5.5% YoY to 230, as per Infoline data.
The reduction in stores isn't just "Vkusvill's" problem. Infoline data shows that trading areas are also decreasing for "Bristol" (part of Mercury Retail Group) and the "Torgservis" group, managing discount networks like "Svetofor," "Mayak," and "Prospekt".
But "Svetofor" isn’t sweating it. They told us that the reduction in trading objects is merely temporary due to regulatory checks by Rospotrebnadzor. Stores that were temporarily closed, for periods ranging from two weeks to 60 days, have already reopened.
It's interesting to observe how these retail giants are adapting to changing consumer behavior and market conditions. "Vkusvill" and "Svetofor" are venturing deep into the digital realm, prioritizing online platforms to boost sales and customer engagement. The focus is on providing a seamless shopping experience, whether it's in-store or online.
The road ahead isn't easy: maintaining high service standards across online and offline channels, and efficient logistics and supply chain management to match the increase in e-commerce volumes are major challenges. But opportunities abound – personalized marketing and customer experiences, and leveraging data to refine product offerings and improve inventory management can lead to success in this rapidly evolving market.
- In the first quarter of 2025, Vkusvill, a major retailer, experienced a significant 10.5% decrease in stores, the highest reduction among retailers, due to the closure of unprofitable locations.
- The Kommersant newspaper reported a 6.8% year-on-year decrease in trading points for Vkusvill in Q1 of 2025, contrasting with the 123 new stores opened in the previous year.
- Experts, such as Michael Burmistrov from Infoline-Analytics and Olga Sumishhevskaya from One Story, have observed a shift in strategy for Vkusvill towards an increase in online sales, with the retail sector as a whole moving towards digital platforms.
- According to Infoline data, not only Vkusvill, but also retailers like Bristol (part of Mercury Retail Group) and the Torgservis group, managing discount networks like Svetofor, Mayak, and Prospekt, have seen a decrease in trading areas.
- Despite temporary store closures due to regulatory checks by Rospotrebnadzor, Svetofor remains optimistic about the future, focusing on digital expansion and prioritizing online platforms to boost sales and improve customer engagement in line with changing consumer behavior and market conditions.
