Dixy Group has announced plans to merge its purchasing with Victoria

Dixy Group has announced plans to merge its purchasing with Victoria

Russan grocer Dixy has revealed plans to merge its purchasing functions with its recent acquisition Victoria Group.

The announcement follows Dixy's acquisition of rival Russian retailer Victoria in June.

A spokesperson told just-food today (26 July) that Dixy plans to renegotiate more advantageous purchasing terms with national suppliers on the back of the increased size of the combined company.

However, he said it was too early to say what cost savings Dixy could achieve through the move.

Dixy plans to work with suppliers through a centralised structure that it claims will reduce logistics costs and vendors' transport and administrative expenses. The retailer said the move will also allow Dixy and its suppliers to optimise marketing budgets and plan deliveries more efficiently.

The retailer is only merging purchasing on a national level, with regional vendors not set to be affected until the Kvartal, Deshevo and Semeynaya Kopilka banners are rebranded.

The revamp of the stores in St Petersburg and in the Leningrad region is expected to be completed by the end of this year. Outlets in the Central Federal District are set to be changed by the end of 2012.