Earlier, Ramstore announced plans to open up to 50 new outlets in Russia to retain its share in the market.
Photo: Frank Villagra
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Ramstore Sheds 10 Stores This Year
Ramstore has closed down ten stores across Russia since the end of 2006 which is almost equal to the number of new outlets opened in 2006. Earlier, the company announced plans to open up to 50 new stores in the country to retain its share in the market. Analysts note that the Turkish food chain is struggling with fierce competition with other retailers and may soon sell its assets.
Ramstore closed six stores in Moscow and four in regions since the end of the year, the company’s partners told Kommersant. The Turkish retailer is leaving St. Petersburg, Rostov-on-Don, Kazan and Cheboksary to give way to its rivals, Azbuka Vkusa, Perekrestok, Carrefour and Auchan.
Ramstore has confirmed the reports, attributing the move to a change in “Ramstore’s development strategy in Russia.” The company, however, would not elaborate.
Ramenka which operates the Ramstore chain in Russia is owned by Turkish Migros and Enka on a parity basis. It owns 9 trade centers and about 65 food hypermarkets across Russia. Migros posted a 30 percent jump in Ramenka’s net proceeds, to $626 million in 2006.
Ramstore opened 12 shops this year, which is almost equal to the number of those closed down. To compare, X5 Retail Group opened 104 new Pyaterochka and 48 Perekrestok outlets in 2006 with 6 shops closed down annually.
Kommersant sources in other retail chain say that Ramstore is struggling with fierce competition in this booming market. Analysts refer to strong rumors that Ramstore is in talks with Wal-Mart, Carrefour, X5 and Sedmoi Kontinent to sell the chain.
www.kommersant.com
All the Article in Russian as of Apr. 23, 2007
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