RUSSIA: O'Key sets out store expansion investment
By Michelle Russell | 4 September 2012
 |
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%.
Sectors: Emerging markets, Retail
Companies: O’Key
View next/previous articles
4 Sep 2012 -
4 Sep 2012 -
Currently reading -
RUSSIA: O'Key sets out store expansion investment
4 Sep 2012 -
Related research
Consumer Trends in the Ice Cream Market in Russia
This report provides the results for the Ice Cream market in Russia from Canadean’s unique, highly detailed and proprietary survey of consumers’ Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG pr...
Consumer Trends in the Oils & Fats Market in Russia
This report provides the results for the Oils & Fats market in Russia from Canadean’s unique, highly detailed and proprietary survey of consumers’ Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG ...
Consumer Trends in the Prepared Meals Market in Russia
This report provides the results for the Russian Prepared Meals market from Canadean’s unique, highly detailed and proprietary survey of consumers’ Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG...
There are currently no comments on this article
Be the first to comment on this article