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November 19, 2013

RUSSIA: Auchan outlines expansion plans for 2014

Auchan has outlined plans to open ten to 14 stores in Russia in 2014 across its three different formats.

By Dean Best

Auchan has outlined plans to open ten to 14 stores in Russia in 2014 across its three different formats.

The French retail giant, which has 75 outlets in Russia, will have opened around 20 hypermarkets in the country by the end of this year.

It has 75 hypermarkets in Russia, operated under the Auchan, Auchan City and Nasha Raduga banners.

In 2014, the retailer is looking at opening stores under each of these banners – four Nasha Raduga, three Auchan and three Auchan City.

“Russia is already the second market of Auchan in terms of turnover,” a spokesperson told just-food. “Russia is a priority market for us.”

The Russian retail market remains fragmented, with the top five retailers controlling less than 15%, which is low by developed market standards. And it is the domestic players that are leading the pack.

Magnit currently holds the top spot, having overtaken its closest rival X5 Retail Group to become the country’s largest grocery retailer by sales in April this year. The pair both have very different strategies for growth, Magnit chooses growth through store openings, while X5 chooses expansion through M&A.

Another dominant domestic player in the market is Dixy, which acquired local peer Victoria in 2011 to become the country’s third-largest retailer.

However, international food retailers have gained a foothold in the market, including Auchan and German retailer Metro Group.

For more on Russia’s FMCG sector, read our management briefing published in October.

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