Principal owner of Marta, Georgy Trefilov, is working with Selgros competitor already.
Photo: Alexey Kudenko
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Rewe to Launch Cash & Carry in Russia
German Rewe Group is launching another retail project in Russia. In tandem with Otto Group, the company is willing to bring here a chain of Selgros Cash & Carry stores. The Russian partner of Rewe, Marta Holding, is also involved in negotiations. The tricky point is that, in the regions, Marta is developing the Real chain owned by Selgros competitor – Metro Group.
Selgros set to negotiating with potential suppliers around a month ago. “In the company, they say they will launch the first Russian store in Moscow in 2007, intending to open around five centers of small wholesale in the capital overall,” said a market player familiar with the Selgros plans. The target to attain is to open 50 Selgros stores in Russia during 20 years, the source specified, adding that, unlike its key competitor, Metro Cash & Carry, Selgros won’t promote its own brands here but is interested in the brands of producers.
Rewe Group is represented in the country already. It develops Billa chain jointly with Marta Holding. Marta is also involved in negotiations on Selgros advance in Russia, said a high-rank source with Marta, specifying its interest in the project is currently agreed on. The company declined to comment officially.
Nowadays, Russia’s Cash & Carry sector is taken by Metro (26 stores) and two native players – Lenta (10) and Victoria (1). Cash & Carry accounts for over 6 percent of foodstuffs sale in the civilized retail of the country, while hypermarkets have more than 20 percent, said Anton Poryadin from AT Kearney.
Hypermarkets will soon push out small wholesalers, forecasted Semen Slytsky, deputy general director at Mosmart chain of stores. “In Russia, the target audience of small wholesale centers is not as big as in Europe. Same Metro Cash & Carry generates the better part of the sales not from wholesale but rather from retail clients. Along with the hypermarkets advance, their outflow from centers of small wholesale will be more and more notable,” Slutsky concluded.
www.kommersant.com
All the Article in Russian as of Oct. 05, 2006
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