OKey said its focus for the investment will be on the Moscow region

O'Key said its focus for the investment will be on the Moscow region

Russian retailer O'Key has said it plans to invest US$500m over the next four years on expanding in its home market.

The retailer said its focus for the investment will be on the Moscow region where it plans to open 100 supermarkets by 2016.

The expansion will also involve the opening of smaller stores with a total area of 1,100sq m and selling space of 750sq m, a spokesperson told just-food today (4 September). This compares to its larger O'Key Express stores that have an average selling space of 1,300sq m.

The first store under the new format will be opened in 2014 but the spokesperson declined to reveal the name of the stores.

O'Key opened its first hypermarket in St Petersburg in 2002. As of 30 June, the retailer had 75 stores, including 45 hypermarkets and 30 supermarkets.

Last week, the group recorded an increase in half-year profits on the back of higher sales.

Earnings in the six months to the end of June climbed 36% to RUR1.47bn (US$45.5m), while EBITDA amounted to RUR3.7bn, a 33.7% increase on the prior-year period.

The retailer reiterated its full year guidance of 25-30% revenue growth. O'Key said it expects its EBITDA margin to be at 7.8% - 8%.