Competition for space intensifies among food retailers
[ad_1]
In the first quarter of this year, the share of ten large retailers of the federal level in the total volume of retail space decreased to 61% against almost 80% a year earlier. The smallest increase in space was shown by the operator of hard discounter chains Svetofor and Mayak. This is uncharacteristic in a crisis, when such a format, on the contrary, is very popular among consumers. Now federal chains have to compete for retail real estate with regional players.
According to the results of the first quarter, the volume of retail space throughout Russia as a whole in ten large federal FMCG retailers amounted to 20.6 million square meters. m, follows from the Infoline study. Thus, now the share of such networks accounts for 61% of the total area, having decreased by 18.9 percentage points year-on-year. At the same time, in January-March of this year, the total increase in retail real estate of all chains, including regional ones, increased by 1.36%, or 460,000 sq. m., compared to the same period in 2022. m, up to 33.8 million sq. m.
Thus, Magnit showed a decrease in growth rates: excluding Magnit Cosmetic, in January-March of this year, the network increased its retail space by 122 thousand square meters. m, which is 1.6 times less than a year earlier. At X5 Group (Pyaterochka, Perekrestok, Chizhik), this figure decreased by 1.2 times, to 93.66 thousand square meters. m.
Mercury Retail Group (Krasnoe & Beloe, Bristol) reduced the growth rate of new store space by 1.3 times to 49.6 thousand sq. m. m. In the first quarter of this year, the most noticeable reduction – 2.2 times, to 29.54 thousand square meters. m – from Torgservis Group, the operator of the network of hard discounters Svetofor and Mayak.
A sharp slowdown in the growth of retail space at Torgservice began in 2022, which is associated with increased competition in the format of hard discounters and the limitations of the network’s business model, which does not have products under its own brands with a volatile assortment matrix, according to Infoline. In the Torgservice Group of Companies, as well as in Krasnoe & Beloe, they did not respond to Kommersant’s request.
General Director of Infoline-Analytics Mikhail Burmistrov believes that the decrease in the growth of retail space at large FMCG retailers in January-March may be due to the postponement of the opening of new stores to the second quarter. This year, according to him, the trend of active development of federal networks in regions where they were not presented earlier has intensified. For example, X5 Group and Mercury Retail Group are now trying to actively develop the markets of the Far East regions.
X5 Group told Kommersant that by the end of 2023 they plan to open about 1,000 Chizhik hard discounters and more than 1,500 convenience stores. Magnit says they are also focusing on neighborhood stores, discounters and drogeries. Fix Price notes that more favorable rental conditions allow opening new chain stores. Although in the first quarter the retailer opened 33.93 thousand sq. m. m of new stores – about the same as a year earlier. By the end of 2023, Fix Price intends to open 750 stores.
Now regional retailers are more active in building retail real estate, says independent consultant Irina Bolotova. This is confirmed by Infoline data, according to which a noticeable increase in the area of new stores was shown by two Far Eastern groups – Nevada (Samberi, Samberi-express, Blizkiy, etc.) and Remi (Remi, Ekonomych ”, “RemiCity”). In the face of tougher competition with federal retailers and ongoing consumer savings, regional chains are also relying on discounters, Ms. Bolotova explains.
According to Infoline, the retail space in general for all retailers will increase by another 2.3 million square meters by the end of 2023. m, which is comparable to the figure for 2022. According to Mikhail Burmistrov, this year large retailers will actively carry out acquisitions of regional players and buy back the business of their franchisees in order to increase the number of stores.
[ad_2]
Source link