Russian supermarket chain Magnit is planning to create a new discount grocery chain, Russian business newspaper Kommersant has reported, citing two sources familiar with the plans.
The success of discount chains has been one of the major trends in the Russian market this year, with consumers' interest in discount shopping intensifying amid the economic fallout from the military campaign in Ukraine.
'Promising Format'
"We consider discounters one of the most promising formats for development, so we will actively increase our presence in this segment," Magnit's press service said in response to a Reuters request.
Since 2020, Magnit has been developing the Moya Tsena (My Price) discounter chain.
According to Magnit, as of December 2022, there are about 700 My Price stores in 63 regions.
Ramp Up Rollout
In December, the group said that it planned to ramp up its discount store rollout, as a result of the growing cost of living squeeze.
"We have opened 45 stores every month this year and plan to maintain a similar pace of expansion in 2023. We consider discounters to be a large segment of our business in the future," Magnit deputy chief executive Ruslan Ismailov said at the time.
The group said it was both opening new locations and reformatting existing stores to tap into the growing demand for low-cost goods. A majority of the discount stores were in small towns and cities with a population of under 100,000, it added.
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