Sportmaster will launch a new format of stores in small towns

The Sportmaster chain has launched a new format of small stores for 250 small towns of the Russian Federation with a population of up to 50 thousand people. The company intends to develop this network through franchising. This will allow Sportmaster to enter populated areas where there is not much competition among large retailers, experts say. However, they doubt the profitability of the project due to the low solvency of residents.

A company representative told Kommersant that Sportmaster began developing franchise stores in small Russian cities with a population of up to 50 thousand people. For this project, the retailer created a new format – Sportmaster Mini stores with an area of ​​100–300 sq. m. m. The network noted that the first such sales points opened in Sharya, Kostroma region, and Ust-Labinsk, Krasnodar region. In total, Sportmaster plans to open franchise stores in 250 small towns.

The retailer, for its part, promises to integrate partners into its store management system, will be responsible for supplies and logistics, draw up a business plan, and also accompany franchisees in establishing operational processes and renovating store premises. Partners will also have access to the entire range of the network, Sportmaster clarifies. Financial details of the franchise program are not disclosed.

The problem of small towns is the low solvency of the population; the average income of a working person in them is 20–30 thousand rubles. per month, says one of the catering chain operators who tried to launch affiliate programs in such localities. According to him, this affects the profitability of sales points, although in cities with a population of up to 50 thousand people there is a demand not only for catering establishments, but also for clothing stores.

The low profitability of stores in small towns may have prompted Sportmaster to enter there not independently, but through a franchising model, which allows reducing costs, says Franshiza.ru expert Anna Rozhdestvenskaya. In addition, adds the managing partner of Vanchugov and Partners, Alexey Vanchugov, in this way the retailer will be able to multiply the pace of scaling the network, while leveling out the costs of repairing premises, equipment and personnel. Local franchisees will be able to take a more flexible approach to creating an assortment in stores and order the most popular goods in a particular locality, notes General Director of Infoline-Analytics Mikhail Burmistrov.

At the same time, Ms. Rozhdestvenskaya notes, stores with an area of ​​100–300 square meters. m cannot be called small in the franchising market, so partners may have difficulty developing such outlets and achieving profitability without preferential conditions from the brand owner. Alexey Vanchugov points out that small premises are always in greatest demand, including in small towns, so rental rates for such sites are usually higher than average. In most of these cities, there is a serious shortage of premises ready for retail, and the renovation of existing facilities will require serious costs, says Kommersant’s interlocutor from among the catering operators.

In general, over the past year, the range of sporting goods in Russia has become wider; their import is not limited to direct deliveries under an agreement with brand rights holders, says business consultant on sales management and strategic development Daniya Tkacheva. But, she points out, due to the introduction of a parallel import mechanism after the departure of a number of foreign brands, the import of counterfeit and gray imports has increased.

Alina Savitskaya