Russian retailer Lenta doubles its selling space
Russia’s fastest growing hypermarket operator Lenta last year doubled its total selling space thus achieving a goal set in early 2014.
In a press release, the retailer said it now has a total selling space of more than 1 million m2, making it the country’s largest hypermarket chain in 2015 in terms of total selling space.
It also said:
- Today Lenta accounts for approximately 20% of all hypermarket selling space in Russia.
- It has opened 87 hypermarkets since the start of 2014 and entered 30 more cities.
- It now has hypermarkets in 32 of the 36 Russian cities with a population above 500,000.
- Total capital investment by Lenta in the 3 year period 2014-16 is estimated to have exceed RUB 120 billion.
Supermarket openings to accelerate in 2017
In addition to hypermarkets, Lenta is also rapidly developing its supermarket format, it said.
“The first pilot supermarket store was opened in Moscow in 2013 – since then the company has opened 43 stores, including 33 stores since its IPO in 2014. Lenta expanded its supermarket business to St Petersburg in 2015 and will open its first supermarkets in Siberia within the next few months.”
Lenta said it plans to significantly accelerate its rate of supermarket openings in 2017.
Lenta has also invested in its distribution network, opening new distribution centres in Moscow, Yekaterinburg, Rostov-on-Don and Tolyatti during the last three years. It said supply chain network now has the capacity to serve over 250 hypermarkets and 250 supermarkets, a strong foundation for future growth.
Huge potential for future growth in Russian retail market
Lenta CEO Jan Dunning said the Russian retail market presents the most efficient operators with huge potential for future growth as well as attractive returns.
In early 2017 Lenta will present a new long-term strategy, in which it will explain its plans to enable Lenta to achieve its full market potential, he said.
Lenta says its low price-low cost business model allowed it to increase its rate of investment in 2016 despite a challenging economic environment. It describes itself a s “a price-led, distinctive hypermarket group in Russia” which is “well-positioned to grow in Russia’s dynamic food retail market.”