The overview of food retail market in Belarus

The overview of food retail
market in Belarus
September, 2013
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2
General information on the review
Review
objective
The review is made for information purposes only and is meant for customers to get
acquainted with general retail market situation in the Republic of Belarus (in particular,
food retail market).
Scope of
review
Particular attention in this review was paid to the development of modern retail chains.
These are basically private companies established in post-Soviet period that are growing
fast at the moment.
State-owned chains, the chain of Belarusian Republican Union of Consumer Societies, as
well as the chain of Belarusian Railway were not considered in the review.
Notions and
definitions used
in the review
3
There are a number of terms in the review typical of retail sector that were used with the
following meanings:
GLA – a term applied to evaluate shopping centers area, it is understood as general sales
area suitable for lease.
Hypermarket is a retail object of more than 5000 sq. m sales area, that has product range
of about 30-50 thousand SKU, own parking lot for 150 cars.
Supermarket is a retail object of 800-5000 sq. m sales area, its product range is about 2040 thousand SKU.
Convenience store is a retail object of up to 800 sq. m sales area, its product range is
about 5-15 thousand SKU. Such store is located in residential districts, it has no custombuilt parking lot.
I.
General overview of Belarusian food retail market
II.
Development of modern retail formats in Belarus
III. Regional peculiarities of modern retail chains’ development
IV. The description of main retail chains
Retail volume in Belarus is distributed almost evenly between foodstuffs
and nonfoods
Total retail turnover structure by product type , %
51,4%
50,2%
52,1%
50,8%
46,6%
49,2%
48,6%
49,8%
49,7%
49,2%
53,4%
50,8%
2007
2008
2009
2010
2011
2012
Foodstuffs
Nonfoods
Total retail turnover structure by economic
entities , %
33,7%
40,4%
26,4%
19,2%
11,7%
9,2%
19,0%
12,0%
11,0%
17,4%
2010
2012
Large organizations
Shopping centers and
market sales
Small organizations
Microorganizations
Others
Total retail turnover structure by form of
ownership, %
14,2%
11,4%
10,8%
82,8%
83,0%
83,3%
3,0%
5,6%
5,9%
2007
Comments
2011
2012
State ownership
Private ownership
Foreign ownership
»
The share of large organizations in total retail
turnover has been constantly increasing for the
last few years. The main reason for this is the
development of modern retail formats in Belarus
and expansion of modern retail chains.
»
At the same time the volume of sales at the market
places (non-organized retail) reduces significantly.
»
State’s share in total retail turnover has reduced
insignificantly by 3,4 pp. in 2007-2012 while the
share of foreign companies has increased
Sources of information: National Statistical Committee of the Republic of Belarus, The concept of retail development
Belorussian food retail market has shown a positive trend in recent years
and will continue to develop actively in 2012-2015
Total food retail turnover, bln. USD
Forecast of total food retail turnover, bln. USD
+7%
+10%
10,5
11,4
12,2
2005 2006 2007 2008 2009 2010 2011
2012
2013
11,3
6,1
7,2
8,7
9,7
11,1
3,0
3,2
2014
2015
+7%
+4%
2,9
14,0
Forecast of retail space, mln. sq. m
Growth of retail space, mln. sq. m
3,3
13,1
3,4
3,6
3,7
2005 2006 2007 2008 2009 2010 2011
3,9
4,2
4,4
4,7
2012
2013
2014
2015
Sources of information: National Statistical Committee of the Republic of Belarus, The concept of retail development,
Program of Social and Economic Development
Belorussian food retail market demonstrates quite high profitability of sales
which is comparable to the profitability of Russian largest retail chains
Profitability of Top-7 Russian largest food retail chains
By net profit
3,6%
1,8%
4,3%
O’kay
8,6%
Sedmoy kontinent
8,6%
Magnit
8,1%
2,4%
GC”Victoria”
7,9%
2,4%
X5 Retail
0,4%
6,9%
DIXY Group
Metro Cash & Carry
Profitability of Belorussian Retail JSCs and average
industrial profitability (by net profit), 2011
6,1%
JSC DorOrs
5,1%
JSC Vesta
3,6%
JSC Dobrobyt
3,0%
Industry average
2,8%
JSC Vitebskie producty
1,9%
JSC Producty
Sources of information: Ministry of Finance, project http://torgrus.com
7,5%
6,9%
5,2%
By EBITDA
At the same time, from the point of availability of retail space per capita, at
the moment retail market is in the stage of development and is far from the
oversaturation stage
Gross Leased Area (GLA) per 1000 of inhabitants,
2011, sq. m
Total retail space availability per 1000 of
inhabitants, sq. m
1.500
EU-27
210
Russia
Belarus
400
980
73
31
448
Russian million cities
410
Forecast of retail space availability per 1000 of
inhabitants in Belarus, sq. m
600
400
2011
382
2015
Minsk
262
Comments
Main retail space is concentrated in the segment of
small shops and retail chains while the segment of
large shopping centers has just begun to develop
“Warp” in retail space availability indicates of
probable “spree” in the construction of shopping
centers in regions, while retail property market in
Minsk will continue to develop quite actively
Sources of information : European Retail Guide, The concept of retail development, news sites
Besides, modern retail formats are just starting to develop in Belarus and,
given the global experience, there is a good potential for their further
development
Share of modern retail formats by countries, 2010, %
France
96%
Czech Republic
57%
Russia
3. In addition, there are good opportunities for
the further market development:
40%
Belarus
25%
Forecast of modern retail formats’ development
in Belarus, %
45%
20%
2010
25%
2011
30%
2012
50%
35%
2013
1. Thus, Belarusian food retail market has
increased rapidly in recent years
2. Modern retail formats have also developed
actively recently and considerably increased
their share in total retail turnover
70%
Poland
Resume
2014
the government objectives to encourage
active development of the commerce as
part of social and economic growth of
the country;
increase in income of population (as part
of Program of social and economic
development);
low level of retail space availability in
comparison with the advanced European
countries;
relatively high industry profitability.
2015
Sources of information: Market overview Beragua Capital, news sites
I.
General overview of Belarusian food retail market
II.
Development of modern retail formats in Belarus
III. Regional peculiarities of modern retail chains’ development
IV. The description of main retail chains
The main representatives of modern retail formats are at the same time the
largest players of food retail market, the gross annual retail turnover of
which is higher than 2 bln. USD
Top-10 retail chains by annual retail
turnover, mln. USD
461
425
Total number of chains’ retail facilities, units
68
Euroopt
281
Korona
134
200
82
192
76
171
135
120
2011
the first half of 2012
120
81
67
60
Almi
18
24
9
10
23
28
54
54
Vesta
Belmarket
Vitalur
85
38
38
Sosedi
Hippo
99
150
64
Rublevsky
88
180
4
4
3
3
Rodnaya storona*
112
189
Prostore
86
25
26
48
47
64
*Including retail turnover of retail facilities under the brand name «Korzinka» and facilities without brand name
Sources of information: sites of the companies, news sites, expert judgment
The strongest modern retail chain at the Belarusian market is «Euroopt», which
share in total retail turnover has reached 7,8% by the first half of 2012.
In general, the concentration of the food retail market is constantly increasing
Top-10 retail chains’ share in total food retail
turnover, the first half of 2012, %
Euroopt
Comments:
Format
Hypermarket
•
•
•
•
•
•
•
•
Euroopt
Korona
Prostore
Hippo
Almi
Vesta
Vitalur
Sosedi
Supermarket
•
•
•
•
•
•
Sosedi
Hippo
Rodnaya storona (NTS)
Almi
Belmarket
Vitalur
Discount store
•
•
Euroopt
Rublevsky
Convenience store
•
•
•
•
•
•
•
Rublevsky
Sosedi
Rodnaya storona (NTS)
Vesta
Belmarket
Vitalur
Almi
Korona
7,8%
Rodnaya storona
Hippo
2,3%
1,9%
1,7%
1,5%
Rublevsky
Prostore
Almi
1,4%
1,0%
1,1%
1,4%
Sosedi
1,3%
1,1%
Vesta
Vitalur
Belmarket
Others
77,5%
Retail chain
6/1/12
Sources of information: sites of the companies, news sites, expert judgment
Despite the constant economic crises in Belarus (2009, 2011), 4 retail
chains have shown very strong positions for the last few years
2009
2011
The number of shops
Hypermarket
Rapid growth
Euroopt
Lack of growth
12
Almi
9
Discount store
111
29
Euroopt
9
Neighborhood store
Rodnaya
storona 18
Belmarket 19
Hippo
Slow growth
1
Supermarket
2
Korona
1
Prostore
1
Almi
1
Vesta
0
Sosedi
0
Vitalur
0
6
5
3
Sosedi
Rublevsky
Rodnaya
storona
2
Belmarket
1
1
1
1
5
Vitalur
Hippo
1
3
1
10
84
45
23
30
8
14
Rublevsky
5
9
7
6
7
4
1
Sources of information: sites of the companies, news sites
Rublevsky
0
Sosedi
Almi
0
6
49
53
16
19
Vesta
Vitalur
Hypermarkets and discount stores are the most actively developed forms of
modern retail formats in Belarus
Number of discount stores of Top-10 largest food
retail chains (as at the beginning of the year)
+89%
Comments
The number of discount stores in Belarus has
grown by more than 10 times in 4 years
+73%
116
9
2009
25
38
2010
2011
67
2012
2013
Number of hypermarkets of Top-10 largest food
retail chains (as at the beginning of the year)
+50%
+58%
30
6
10
13
2009
2010
2011
19
2012
2013
Sources of information: sites of the companies, news sites
Meanwhile, great share of this market segment
(about 90%) belongs to one player:
JSC«Eurotorg» (brand Euroopt)
The number of hypermarkets was growing at a
slower rate but still has increased by 5 times in 4
years
Hypermarket format can be considered as more
competitive as there are 3 large players and a
number of smaller ones
Moreover, it is necessary to take into account that
hypermarkets are established mostly in large
cities with relatively high incomes of population,
and therefore, are restricted in their development
within Belarus as opposed to discount stores
which could develop not only in Minsk and
regional centers but also in small towns
Such formats as supermarkets and convenience stores also developed in
2008-2012, however, their growth was not so rapid…
Number of supermarkets of Top-10 largest food
retail chains (as at the beginning of the year)
+35%
22
2009
36
2010
54
2011
Comments
+19%
74
62
2012
2013
Number of convenience stores of Top-12 largest
food retail chains (as at the beginning of the year)
+17%
133
2009
+11%
196
204
225
249
2010
2011
2012
2013
Sources of information: sites of the companies, news sites
The number of supermarkets and convenience
stores in Belarus has grown by more than 3,3 and
1,9 times respectively
Moreover, both segments are highly competitive
with a large number of players
Slow growth rates of supermarkets could be
explained by the fact that this format is oriented
on population with relatively high level of income
that under the circumstances of crisis diminishes
its attractiveness
The existence of only one town (Minsk) with
population over 1 mln. inhabitants in the country
and a significant number of small towns
combined with relatively low income of
population leads to the relatively high popularity
of such format as convenience stores
At the present moment the structure of modern retail formats in Belarus
differs considerably from European and Russian ones, however, a significant
structural changes could be expected in the near future…
Structure of Top-10 largest retail chains in
Belarus (by space) 2011
29%
17%
32%
Convenience stores
Discount stores
Supermarkets
Hypermarkets
21%
Average European structure of the largest retail
chains, 2010
4%
8%
22%
26%
40%
Convenience stores
Discount stores
Supermarkets
Hypermarkets
Cash and carry
warehouse
Structure of the largest retail chains in Russia,
2010
0%
Convenience stores
6%
Discount stores
35%
25%
Supermarkets
Hypermarkets
Cash and carry
warehouse
34%
Comments
On the basis of the average structure of Russian and
European retail chains, the increase of discount
stores’ share in Belarusian retail food market could
be expected in the near future, while the share of
convenience stores is forecasted to decrease
In case of stable economic situation and growth of
income of the population, more active development
of supermarkets could be expected as well as an
increase of their share in total structure
Sources of information: Market overview Beragua Capital, news sites
I.
General overview of Belarusian food retail market
II.
Development of modern retail formats in Belarus
III. Regional peculiarities of modern retail chains’ development
IV. The description of main retail chains
There is great potential for the further development of retail and expansion
of modern formats in regional centres of the Republic of Belarus…
Total retail space availability per 1000 of
inhabitants, sq.m. (as at the beginning of 2012)
600
Average wages, USD. (at the beginning of 2012)
900
Plan by 2015
512
425
Vitebsk
355
Brest
366
410
Minsk
400
Belarus on average
397
Mogilev
362
Gomel
372
387
347
Grodno
477
390
396
Comments
Both Minsk and regional centers have potential for the increase of the retail facilities’ number, the only
exception is Vitebsk. It has the leading position in retail space availability
Moreover, a significant increase in income of the population is expected. Though even now major cities
occupy a leading position on the level of wages in the country
Therefore, the most attractive cities for retail development can be considered Minsk. Grodno, Gomel and
Brest
Sources of information: National Statistic Committee of the Republic of Belarus, news sites
…and not only in regional centers but also in district towns
Total retail space availability per 1000 of
inhabitants, sq.m. (as at the beginning of 2012)
Plan by 2015
600
900
Soligorsk
450
414
688
455
Zhlobin
407
Novopolotsk
400
Belarus on average
390
384
379
Comments
Average wages, USD. (at the beginning of 2012)
Baranovichi
485
390
345
469
Zhodino
Molodechno
342
369
Mozyr
384
366
Svetlogorsk
401
324
286
Bobruisk
Polotsk
375
352
Towns, income level of which is higher than average in Belarus, as a rule have better retail space
availability than other towns (Soligorsk, Zhlobin, Novopolotsk).
In addition, district towns show the average republican level of retail space availability.
Sources of information: National Statistic Committee of the Republic of Belarus, news sites
As at the beginning of 2013 «Euroopt» was the major player in the whole
country. Expansion in regions of other retail chains is still quite slow
The penetration rate of top 10 retailers in
regions, as at the beginning of 2013*
Euroopt
100,0%
Almi
59,1%
Rodnaya storona
45,5%
Rublevsky
31,8%
Belmarket
27,3%
Sosedi
22,7%
Korona
18,2%
Vitalur
18,2%
Hippo
Vesta
Prostore
Comments
Such formats as discount stores and
convenience stores could be considered as
leaders by the level of penetration in regions
On the whole, the tendency of expansion into
regions is typical for all retail chains
The leader according to this criteria is JSC
«Eurotorg», which at the beginning of 2013 has
opened its stores in 39 towns
At the moment, the main target for most retail
chains are regional centers and district towns
with high level of income of population
13,6%
9,1%
4,5%
* 23 towns with a population of more than 50 000 inhabitants are
taken as the target market = 100%
Sources of information: National Statistic Committee of the Republic of Belarus, sites of companies
Regional structure and peculiarities of the retail chains regional
development vary greatly depending on the type of format
1. Hypermarkets (at the beginning of 2013)
Гиппо
Простор
Евроопт
Корона
Бигзз
Соседи
Виталюр
Алми
Веста
1
1
Vitebsk
Molodechno
1
1
2
Планируемые
1
Lida
1
3
4
1
11 1
Grodno
Mogilev
3
1
Minsk
Bobruisk
1 1
1
Brest
1
1
1
Soligorsk
Pinsk
1
Zhlobin
1
Gomel
Rechytsa 1 1
1
1
Most of hypermarkets are currently concentrated in Minsk, however, there
is a tendency of opening hypermarkets in regional centers and major
district towns
Current condition
Possible targeted towns
Despite the considerable number of hypermarkets
in Minsk at the moment, establishment of new
facilities in this format could be expected in the
near future
Polotsk
There is an obvious tendency of regional expansion:
almost all the hypermarkets in regional centers
were opened in 2011.
Such major towns as Soligorsk, Bobruisk and
Molodechno got into the circle of influence.
Peculiarities of development (requirements)
Location sites: the area of a hypermarket is about
3000 sq. m and more. The sites of such size are hard
or impossible to find in Belarus that is why
hypermarkets are built up from scratch, which
requires significant capital investment
Relatively high income level of population
Focus on major towns, towns with population of
more than 300 ths. people (though recently towns
with population about 100 ths. have been included
into the focus of interest)
Sources of information: sites of the companies, news sites
Mogilev
Grodno
Minsk
Baranovichi
Bobruisk
Svetlogorsk
Brest
Mozyr
Gomel
Regional structure and peculiarities of the retail chains regional
development vary greatly depending on the type of format
2. Discount stores (at the beginning of 2013)
Novopolotsk
2
5 Polotsk
Braslav
Euroopt
Rublevsky
5
Glubokoe
Vitebsk
Baran
Miadel
Smorgon Vileika
Molodechno
1
3 3
Lida
2
6
Grodno
Volkovisk
Novogrudok
4
Mogilev
Nesvij
Baranovichi
Pinsk
Krichev
8
Minsk
Sluts
k
Soligorsk
3
Bereza
Gorki
2
23
6
Brest
Borisov
2
Zhodino
Orsha
2
Osipovichi
5
Bobruisk
Zhlobin
Svetlogorsk
Gomel
Kalinkovichi Rechitsa
2
6 Mozyr
6
Such retail format as discount stores can be considered as a leader in
Belarus by the level of penetration in regions
Current situation
Currently there are discount stores not only in the
capital and regional centers but also in district and
small towns.
Most discount stores were opened in regions in
2010-2011.
Such a high level of region penetration is explained
to a large extent by active expansionist policy of JSC
“Eurotorg" which is actually a monopoly in this
format.
Peculiarities of format’s development (requirements)
»
»
Location sites: there are no particular requirements
towards facility area. One of the most popular ways
to develop this format in regions has become the
acquisition of already functioning small retail chains
and convenience stores and their subsequent reorientation in discount stores, reducing significantly
capital investments in such a way
There are no special requirements towards the
level of income of population. On the contrary, this
format is aimed at people with middle and low level
of income.
Sources of information: sites of the companies, news sites
!
The opportunity to develop in any town,
especially in a town with low level of
retail space availability and relatively low
level of income
Discount store “Euroopt” plans of
development across the country
+133
244
111
the
beginning
of 2013
the end
of 2013
Regional structure and peculiarities of the retail chains regional
development vary greatly depending on the type of format
3. Supermarkets (at the beginning of 2013)
Sosedi
Almi
Rublevsky
Hippo
Vitalur
Rodnaya storona
Belmarket
1
Vitebsk
Orsha
Molodechno
1
1
5
Lida
1
1 1
Grodno
Slonim
2
2 9
4
1
4
6 7
1
1 2
2
Zhodino
Mogilev
3
Minsk
Baranovichi
1 1
Brest
2
Borisov
Bobruisk
1 1
1
Zhlobin
Svetlogorsk
Pinsk
2
Gomel
3
2
1
Currently most of supermarkets are concentrated in Minsk and regional
centers
Current situation
Possible targeted towns
Despite the considerable number of supermarkets in
Minsk at the moment, in the coming years it could be
expected the establishment of new facilities in this
format
Polotsk
The tendency of regional expansion is also taken
place. In the near future more than 11 new facilities
will be opened, 8 of which will be located either in a
regional centre or in a district town
Towns without hypermarkets are the main focus of
interest.
Mogilev
Peculiarities of format’s development (requirements)
Location sites: there are no special requirements,
although a lack of ready sites of necessary square
exists (area from 1000 to 2000 sq. m).
Orientation on relatively high level of income of
population, stability of economic development.
Focus on middle and major towns (requirement
standards are lower than for hypermarkets).
Sources of information: sites of the companies, news sites
Minsk
Grodno
Baranivichi
Slutsk
Svetlogorsk
Brest
Mozyr
Gomel
Regional structure and peculiarities of the retail chains regional
development vary greatly depending on the type of format
4. Convenience stores (at the beginning of 2013)
Current situation
Rublevsky
Vitalur
Sosedi
7
Belmarket
52
Rodnaya storona
Vitebsk
Almi
Borisov
Molodechno 1
Vesta
2
Lida
1
11
10 Grodno
4 Skidel
Orsha
Gorky
1 3
93
29
ZhodinoMogilev
11 1
1
19
11
20
In general, it will continue to develop but
much slower in comparison with other
formats, especially considering global
tendencies for small share of this format.
One of the most appropriate options for
further development could become buying
of existing non-chain retail facilities.
Minsk
Baranovichi
12
Peculiarities of format’s development
(requirements)
Bobruisk
1
9
Gomel
1
Brest
5
This format is very similar to the non-chain
convenience stores.
Mozyr
27
5
Sources of information: sites of the companies, news sites
Location sites: no special requirements
(mostly areas from 300 to 800 sq. m).
Middle income level of population.
Can be located in any town.
On the whole, Belarusian food retail market at this stage of its development
is characterized by a number of main trends:
Industry’s
tendencies
Formats’
tendencies
1. Retail chain growth and industry consolidation:
Reduction of share of non-organized retail in the market;
Acquisition and take-over of the functioning small chains and non-chain retail facilities;
Active construction of additional retail space and new facilities.
2. Regional expansion of chains:
Active establishment of retail facilities in regions (mostly in cities with population of 100
000 and relatively high level of income).
3. The development of multi-purpose chains:
Chains work in several formats at the same time (hypermarket-supermarket;
hypermarket –discount store and so on).
4. The development of logistics network :
Retail chains create their own logistics centers to optimize the deliveries and facilitate
their work with suppliers.
1.
Active development of modern retail formats in the years to come
2.
Increase of share and, therefore, the number of discount stores and hypermarkets
3.
Reduction of share of convenience stores although this format itself will remain popular
because of small size of the territory of Belarus and predominance of small towns
4.
In case of stable economic growth, increase of supermarkets share and number could be
expected
5.
There is also an opportunity that some chain facilities will be reoriented in other formats,
e.g. a supermarket into a discount store or a convenience store into a discounter
Sources of information: sites of the companies, news sites
I.
General overview of Belarusian food retail market
II.
Development of modern retail formats in Belarus
III. Regional peculiarities of modern retail chains’ development
IV. The description of main retail chains
Retail chain «Euroopt» is one of the most active players in the
market which develops a discount store format
Chain growth, un.(as on the beginning of the year)
+129
Discounter
154
Hypermarket
95
68
1 8
10
1 9
25
24
1
2008
2009
2010
9
39
63
36
3
2011
142
87
5
8
12
2012
сент.
2012
2013
Financial information of JSC “Eurotorg”, 2012
Revenue, USD mln.
1.038
Information on the chain
»
The owner of the retail chain «Euroopt» is JSC
«Eurotorg».
»
The main shareholders are Sergey Litvin and
Vladimir Vasilko.
»
General Director is Zubkov Andrei Vladimirovich.
»
The average bill of the hyperdiscounter in Minsk
was about USD 15 in May-June 2012.
The range of commodities (SKU), un.
Discount stores
>2.000
Hyperdiscounters, Minsk
Sales profit, USD mln.
Net profit, USD mln.
75
36
35.000
The number of visitors, ppl.
Visitors per day
in all the discounters
Visitors per day
in hyperdiscounter, Minsk*
Sources of information: sites of the companies, news sites, Ministry of Finance
160.000
5.300
Discount stores «Euroopt» are represented almost equally in all the
regions of the country
Geographical chain structure, Aug. 2013
(by number of shops), %
10,1%
9,5%
12,2%
19,6%
12,2%
19,6%
14,2%
Minsk
Mogilev region
Vitebsk region
Gomel region
Grodno region
Minsk region
Brest region
Geographical chain structure, June 2012
(by total area), %
7,0%
27,1%
8,4% 6,5%
14,0%
16,3%
20,6%
Minsk
Gomel region
Brest region
Vitebsk region
Grodno region
Mogilev region
Minsk region
Sources of information: company information
Area structure by form of ownership June 2012, %
Owned facilities
Rented facilities
47%
(87.082)
53%
(97.806)
Average retail areas by regions June 2012, sq.m.
Brest region
1.362
Minsk
1.199
Gomel region
944
Grodno region
774
Vitebsk region
745
Minsk region
Mogilev region
693
442
JSC «Euroopt» development plans can be called aggressive and
expansionist
Chain development plans till the end of 2014
(by area), ths. sq.m
+295%
It is expected during 2012-2014:
 the construction of 36 facilities with total retail
area of 75 400 sq. m;
 the opening of 26 facilities with total retail area
of 17 500 sq.m. on either rented or owned
sites;
 the opening of other 182 facilities with total
retail area of 151 600 sq. m.
Retail area
Total area
+321%
01.07.2012
Chain development plans till the end of 2014
01.10.2014*
Financing sources of development project , mln. USD
In accordance with the program of development
opening of 2 appliance shops is planned
Partly the discount stores will be opened in
Russian Federation
224
232
456
Long-term bank credits
Internal funds
Sources of information: company information
There are some administrative and political
complications in getting sites to rent in Belarusian
regions
"Almi" retail chain develops in a format of
"supermarket", however, it has one hypermarket and is
going to open another one in the near future
Chain growth, un. (as on the beginning of the year)
+30
Supermarket
Hypermarket
41
19
4
1 3
2008
10
1
9
2009
11
10 1
2010
23
40
18
22
1
1
1
2011
2012
2013
Chain information
»
Group of companies ALMI is a multi-purpose
transnational retail chain
»
Company owner is Alexander Mihailovich Zaribko.
»
Having sold and put in pawn his share of one of the
largest retailers in Russia «Victoria», he began his
own project «Almi»
»
The retail chain includes (under their own
classification):
» 18 groceries (<1000 sq. m);
» 18 self-service stores (1000-2000 sq. m);
» 4 supermarkets (2000-4000 sq. m);
» 1 hypermarket (10 000 sq. m).
»
In the near future the chain is planning to build its
own logistics center and 2 hypermarkets in Minsk
of total area of 10 ths. sq. m each. The construction
is to be finished in 2014
»
Almi chain develops private label retail in its
facilities (the main products are eggs, mineral
water, dumplings, pelmeni and chocolate glazed
curd bar).
Range of commodities (SKU), units
23.000
9.000
5.000
From
On average
to
Sources of information: sites of the companies, news sites
JV "NTS" is one of the largest Belarusian companies developing
modern retail technologies in the Republic of Belarus
Chain growth, un. (as on the beginning of the year)
Chain information
+89
85
23
4
2008
2009
36
2010
53
2011
93
64
2012
JV "NTS" has 2 brands: «Rodnaya storona» and
«Korsinka», the company also owns 20 facilities
without a certain trademark
The founder of this business is Igor Chernyavsky,
who used to import tinned food and alcohol and
then distributed beer. Later a Ukrainian banker
Nikolay Lagun joined the company as a partner
Sept.
2013
2013
The development of its own logistics chain
In addition to the retail chain the Company owns a
logistic center "Twenty-Four" established on April
23, 2010 :
 automated warehouse of class A + area of ​20
159 sq. m with high bandwidth (46 industrial
doors);
 unique cold storage which area is 4 446 sq. m;
 new transport park: 30 its own vehicles MAN.
Sources of information: sites of the companies, news sites
General Director
Grishchenko
of
JV
"NTS"
is
Marina
In the middle of 2012 it was decided to reorient the chain
“Korzinka" in the format of the chain “Rodnaya storona",
although initially the chains had significant differences in their
characteristics
• A convenient location
• A wide range of products
• Own production
• Best selling range
• Sale prices
• Constant pricing actions
Supermarket
Convenience store
7-10
3-6
Convenience store
(economical
supermarket)
2-3
Number of shops
>4
50
15
Total average area
1700
600
700
Average retail area
1200
400
Price level
Market price
Market price
Own make
yes
limited
500
Market price minus 5%
(-10% on sale)
limited
yes
Rodnaya storona,
Korzinka
no
yes
Rodnaya storona
Korzinka
Range, ths. SKU
Parking
Trade mark
Sources of information: sites of the companies, news sites
Retail chain «Korona» develops only in the format of «hypermarket»
Chain growth, un. (as on the beginning of the year)
Chain information
+5
1
1
2008
2009
2
2010
3
4
6
The owner of retail chain «Korona» is Topuzidis
Paul, board member of LLC "Tabak-Invest“.
He is also engaged in children's toys, cigarettes,
real estate businesses.
Revenue, 2012 – 255 mln. USD
2011
2012
2013
The number of visitors in Minsk hypermarket, ppl. a day
Minsk
16.000
Range of commodities, un.
Minsk
80.000
Brest
60.000
Bobruisk
Vitebsk
37.000
10.000
Sources of information: sites of the companies, news sites
Rublevsky is one of the largest retail chains, developing
mainly within Minsk
Chain growth, un. (as on the beginning of the year)
+28
19
2008
29
25
2009
2010
43
35
2011
2012
Chain information
»
The managing company of retail chain
“Rublevsky" is holding Retail Trading Logistics
(RTL). It contains «Monstra-group», «Arlon»,
«Tibetray» and «Bitter-group».
»
The main owners are Sergey Tkachuk and Alex
Loyko.
The outlets are positioned as convenience stores
which are located within walking distance from
the shoppers’ accommodation.
The retail chain includes (under their own
classification):
» 8 shops class «mini» (<350 sq. m);
» 22 shops class «standart» (350-700 sq. m);
» 9 shops class «super» (700-1200 sq. m);
» 6 discounters (400-450 sq. m) under brand
“Baza”.
47
2013
Number of chain visitors, ppl a day
»
»
85.000
Retail area, sq. m
1.200
»
Rapid growth of the chain is sponsored by credits
(including credit from IFC):
»
»
200
От
До
Sources of information: sites of the companies, news sites
7mln, USD long-term credit
19 mln. USD subordinated credit
Retail chain «Hippo» chose 2 main formats of development:
hypermarkets and supermarkets
Chain growth, un. (as at the beginning of the year)
10
9
7
6
5
5
3
3
3
3
4
4
4
2
2
2
1
1
Chain information
The owner of the retail chain "Hippo" is FE
"BelVillesden."
8 out of 10 retail facilities are located in Minsk.
By 2015, the company "BelVillesden" is going to
open a new retail and entertainment center (TC) in
Partizansky avenue close to “Mogilevskaya” metro
2008
2009
2010
2011
2012
2013
station. At the ground floor will be located a
Hypermarkets
Supermarkets
hypermarket "Hippo“ which area will be about ​5
ths. sq. m.
General characteristics of the chain at the beginning of 2012
Hypermarket
Supermarket
Number of facilities
In Minsk
6
4
4
4
Total average area
11 400
3 000
Average retail area
6 260
1 770
Number of trade marks(SKU)
35 ths. and more.
10-30 ths.
Parking
About 450 spaces
yes
Sources of information: sites of the companies, news sites
Unlike most retailers, Belmarket develops its chain in regional
and district towns, but not in Minsk
Chain growth, un. (as on the beginning of the year)
+48
56
48
49
51
2011
2012
2013
Chain information
»
Belmarket is a project of A1 Group which is the
Russian business, investment subsidiary of "AlfaGroup".
»
The chairman of FLLC "Belmarketkompani"
Alexander Babikov used to be the head of the food
department and managing director of the company
"Alfa-Eco".
»
In 2009 "Belmarket" started to get a loan of 16
mln. USD for the chain development from IFC.
»
According to its business plan, by the end of 2011
the company should have 128 stores, however, the
company has suspended the development of the
chain. In 2013 the company again plans to speed
the growth and to have 65 shops by 2014.
65
20
3
2008
2009
2010
2014
Sources of information: sites of the companies, news sites
The retail chain “Sosedi” position itself as a chain of
supermarkets, while in segment of convenience stores the same
owner has another chain – “Tropinka”
Chain growth (without “Tropinka”), un.
(as on the beginning of the year)
Chain information
+29
39
10
13
15
16
18
2008
2009
2010
2011
2012
»
The retail chain “Sosedi” belongs to Alma
Jauncemiene.
»
The retail chain includes (under their own
classification) 24 supermarkets (500-2000 sq. m)
and 1 hypermarket (4500 sq. m), that was opened
only in 2012. The same owner simultaneously
develops the chain of convenience stores (<500 sq.
m) under the brand “Tropinka” that currently
unites 15 shops.
»
Besides the retail chains the same owner possesses
pizzeria “PizzaTempo” (currently there are 14
objects) and 5 restaurants “Vasilki”.
»
Moreover, company “Fruitimport”, which is the 2nd
largest importer of fruits in Belarus, also belongs to
Alma Jauncemiene
»
In the nearest future company
construction of its own logistic center.
2013
Number of chain visitors, ppl a day
100.000
Retail area, sq. m
5000
500
From
To
Sources of information: sites of the companies, news sites
plans
the
«Vitalur» starts its regional extension and concentrates on the retail
chain development in Minsk
Chain growth, un. (as on the beginning of the year)
+12%
19
3
16
21
4
17
24
6
27
7 1
18
19
2010
2011
2012
2013
Hypermarket
Chain information
»
The retail chain “Vitalur” belongs to Alexander
Yatsuk.
»
ALC “Vitalur” has been working since 1995.
»
Total number of employees is more than 1400 ppl.
»
“Vitalur” is included in the list of importers, that
give the government the exclusive right to the
import of fish and seafood. Initially “Vitalur”
specialized only in fish food.
»
“Vitalur” has started the creation of food retail
chain since 2005.
»
“Vitalur” works mainly in the segment of
convenience stores, increasing the number of
“supermarkets”. The first hypermarket was opened
in 2012.
»
In 2013 3 store are planned to be opened in Minsk,
Borisov and Soligorsk.
»
Besides, in 2013 “Vitalur” is going to open café for
a family under the brand “Greenki”. The first two
cafés are planned to be opened in the end of
January – middle of February.
Supermarket
General characteristics of the chain
Outlets
Number of facilities
In Minsk
In Bobruisk
In Borisov
In Lida
27
24
1
1
1
Total average area, sq. m
365
Average traffic, ppl
118 ths
Sources of information: sites of the companies, news sites
Our contact information:
Minsk
Minsk, Belarus
Investment company «Enter» Ltd.
34-210 Sherbakova Str.
Tel.: +375 17 266 95 04
Mob..: +375 44 761 28 62
Fax: +375 17 230 95 11
e-mail: info@enter-invest.com
For more detailed information contact:
Oleg Chanov
Oleg Andreyev
Andrei Matsiavin
Managing partner
Management Consulting
Managing Director,
Investment Banking
Business Development
Director
34-210 Sherbakova Str.
Tel.: +375 17 266 95 04
Mob.: +375 29 652 20 14
Fax: +375 17 230 95 11
e-mail: oa@enter-invest.com
34-210 Sherbakova Str.
Tel.: +375 17 266 95 04
Mob.: +375 44 744 99 68
Fax: +375 17 230 95 11
e-mail: oa@enter-invest.com
34-210 Sherbakova Str.
Tel.: +375 17 266 95 04
Mob.: +375 29 754 36 12
Fax: +375 17 230 95 11
e-mail: am@enter-invest.com