Tele2 to reduce its chain of stores in Russia by 15% by August – Kommersant

The mobile operator Tele2 will close about 400 retail outlets by August 2023, which is 15% of the operator’s retail stores. Director of Tele2 Retail Denis Goleshchikhin in a conversation with TASS explained this by the reduction of the SIM-card market and the decrease in traffic in the salons. The money released after the reduction will be directed to digitalization.

“In the current market conditions, we believe that the strategy to optimize the operator’s retail is the right one. We intend to reduce the number of stores by 15%, which is about 400 outlets across the country. The closure of some of the stores will improve the efficiency of the remaining stores of the retail chain,” Mr. Goleshchikhin said. Later, the press service clarified that the network would be reduced by August.

Denis Goleshchikhin noted that in the countries of Europe and the USA there are twice as many citizens per communication store as in Russia. “This confirms the conclusion that Russian telecom retail is overheated. All operators have long been announcing a reduction in the number of salons, but optimization must proceed at a faster pace. We predict network cuts by operators by 40-50% compared to pre-pandemic times,” he added.

The funds released after the reduction of the network will go to digital signage and price tags, virtual storefronts, video surveillance and visitor counting systems, a project to rent digital advertising media, the development of a mobile application for sellers, and collaborations.

According to Denis Goleshchikhin, the volume of the SIM card market has drastically declined. In 2016–2017, it amounted to about 120 million rubles. In 2022, the decrease in the number of visitors in the salons was about 40% compared to the pre-pandemic period. Before the pandemic, the average cabin area was 35 square meters. m (less than the general market), after – about 29 sq. m. “Now the number one task is to work on the effectiveness of each individual location. Today, in a non-growing market, operators are forced to aggressively reduce the area of ​​salons,” said Denis Goleshchikhin.

Tele2 retail operates on a franchise model. The operator has 350 partners throughout Russia and more than 2650 salons.

Anastasia Larina