Retailers minimize the development of hypermarkets

Источник: The DairyNews
Retail chains are gradually minimizing the development of hypermarkets. Retailers are reducing their space and opening city-format stores with an area of less than 5 thousand square meters. This trend was recorded by the broker of retail real estate in his report for the first half of 2019.

"Izvestia" studied the document. X5 Retail Group (“Pyaterochka”, “Perekrestok”, “Karusel”) confirmed that hypermarkets have feet bad all over the world in recent years. Russians buy for the future less and less and prefer doing shopping near the house. The network "OK" also believe that the city-format has a good potential for development in the domestic market. 

Retailers began to reduce the area. They refuse to build hypermarkets up to 15 thousand square meters and prefer not such large formats — less than 5 thousand square meters. This is stated in the last report of the broker of retail real estate "Magazin magazinov", the document was studied by "Izvestia". The area of the hypermarkets is also reducing.

— For example, in 2017, the retail network “Auchan” began construction of a shop for 15 thousand square meters, as a result, in 2019 it was opened on an area of 8 thousand square meters, — the company noted.

The company has already stated that in 2020 it has no plans to create hypermarkets; they will open stores "near the house".

Retail outlets of the so-called city-format appear in all players of the consumer market. Metro cash&carry continues to expand the network "Fasol" (up to 150 sq. m), "Magnit" uses small area for its stores (100-250 sq. m) and the network "Perekrestok" is also expanding under the new concept (up to 1 thousand sq. m).

If in 2015 the average area of "Lenta" stores was 5.1 thousand square meters, in 2018 - 3.8 thousand. Even the initially small stores of "Pyaterochka" are becoming smaller. If earlier the network was looking for new area from a minimum of 600 sq. m, now they prefer to choose the facilities of no more than 300 sq. m.

According to the representative of "Magazin magazinov", more compact outlets are easier to develop in the city. The broker's report says that the situation is developing in the context of the continuing decline in purchasing power. Retailers also limit the range removing unprofitable product items. For example, the range of related non-food products is being reduced- in recent years their share has decreased from 50-60% to 30-40%.

For buyers, such factors as the closeness of the outlet to the house, saving time for shopping due to the lack of large queues and the compactness of the store have become important.

Among other factors that provoked the current trend - the alignment of prices in hypermarkets and small retail outlets "near the house". Previously, it was much more profitable to buy goods in large format stores. Now the prices of "the big stores" rose, and the ones of "the small" — on the contrary, were adjusted to the consumer. The broker's report noted that the problem of hypermarkets lies in their inconvenient location. Russians are gradually abandoning the habit of coming to the store for a long time and buying for the whole week.

– In recent years, hypermarkets have felt bad all over the world. Consumers come there to buy for the future, and this purchasing "mission" is gradually dying, — confirmed to "Izvestia" in X5 Retail Group ("Pyaterochka", "Perekrestok" and "Karusel").

Firstly, the number of shops "near the house" is growing, and secondly, fresh products, fruits and vegetables are becoming more important for buyers: people want to buy them every other day, not once a week or every two weeks, noted in the press service of the retailer. Thirdly, a large share of the range of hypermarkets is non-food products, the sales of which are increasingly moving online.

— Now all companies are thinking what to do with hypermarkets, and so are we, — noted the representative of a trade network.

However, the company claims that hypermarkets "Karusel" work quite effectively. The network has updated the concept and rebranded "Karusel", revised the range and expanded the range of categories "fruits and vegetables". In 2018 eight hypermarkets were reconstructed. 

The press service of the "Magnit" said to "Izvestia" that the retail network traditionally has a large format — supermarkets with an average sales area of about 2 thousand square meters. As for large-outlets, the company has few of them.

“Auchan Retail Russia” told “Izvestia” that they will develop all the formats they have.

— We primarily rely on the effective use of retail space, — explained in the company.

The "OK" believe that the Russian market has great potential for the development of modern small format. But, as Director of corporate development Anton Farlenkov told "Izvestia", this market is gradually saturated.

The network of hypermarkets Metro Cash&Carry at the time of publication did not respond to the request of "Izvestia".

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Новый год, 23 февраля, 8 марта – праздники никогда не были помехой потреблению молока. Наоборот, в такие дни спрос на молочные продукты обычно увеличивается.
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