Mosmart freezes Ukrainian expansion plans
Mosmart and EastOne have frozen their ambitious expansion plans to open 50 hypermarkets and 500 neighbourhood stores in Ukraine by 2012. Mosmart Vice President Semen Slutsky said that investment plans of USD300 will be put on hold at least until the spring of 2009. However, the local media have reported that Mosmart was not ready to invest in Ukraine and EastOne does not want to continue investing on its own. In addition, Mosmart has sold its Mosmartik convenience store format this year in order to pay its debts. Apart from Mosmart, other Russian retailers such as X5 Retail Group and Vester have abandoned their investment plans in Ukraine. X5 CEO Lev Khasis said that its six Perekrestok stores in the Ukraine do not cover their costs. The retailer said it does not plan any further expansion in the Ukraine in the short term. Khasis said: "In Ukraine, officials are more passionate about the internal political struggles than the problems in the retail sector. We will explore new opportunities, but so far they do not exist.”
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