Euroset exits Ukraine
Russian mobile phone retailer Euroset has withdrawn from the Ukraine, closing down its remaining stores due to low profitability, RetailStudio reports. Euroset has been reducing its store network in Ukraine since 2009. The biggest disposal happened in the summer of 2010 when the company shut 150 outlets. In December 2010, Euroset had 275 stores in the country while by August 2011 that number was down to 170. “We have decided to exit the Ukrainian market but we plan to return when the conditions become more favourable,” said Euroset CEO Alexander Malis.
Euroset was the first Russian mobile retailer to enter the CIS countries, establishing store networks in Ukraine and Kazakhstan in late 2004. It then moved into Belarus, Kyrgyzstan, Azerbaijan, Uzbekistan, Moldova, Lithuania, Estonia, Latvia and Armenia. However, having experienced poor sales performance and drop in profit in most of the markets, Euroset altered its international strategy and withdrew from the majority of them. At present, the company operates only in its home Russian market and Belarus.
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