Lenta joins Perekriostok and Kopeyka in their purchasing alliance

Perekriostok, owned by Alfa Group, operates 76 stores. Its turnover in 2003 exceeded USD450 million.

St.Petersburg hypermarket chain Lenta has joined Perekriostok and Kopeyka in their purchasing alliance that was formed last spring, Vedomosty newspaper informs. According to Lenta CEO Oleg Zherebtsov, alliance is based on the three main principles. Firstly, it calls for the major producers to reject distribution and work directly with the chains, secondly, it insists on discounts for certain groups of products and thirdly its members share information on their prices, discounts, etc. For example, if one member of alliance has been offered low prices others can automatically count on the same.

Activities of the extended alliance have already brought fruit. Ketchup producer Baltimor at last agreed to work directly with the chains and its products returned to the shelves of Perekriostok and Kopeyka. Direct cooperation with Baltimor led to cutting purchasing price by more than 10 per cent. Ukrainian Nemiroff is expected to take similar action by September 15. Otherwise, its production will disappear from supermarkets of alliance. Among other goals of the alliance are such producers as Korkunov confectionary, Kampomos and Procter & Gamble.

Overall turnover of the three chains in 2005 is to approach USD2 billion, Oleg Zherebtsov commented. That will allow us to dictate our own terms to suppliers, he stressed.

Perekriostok, owned by Alfa Group, operates 76 stores. Its turnover in 2003 exceeded USD450 million.

St.Petersburg hypermarket chain Lenta has joined Perekriostok and Kopeyka in their purchasing alliance that was formed last spring, Vedomosty newspaper informs. According to Lenta CEO Oleg Zherebtsov, alliance is based on the three main principles. Firstly, it calls for the major producers to reject distribution and work directly with the chains, secondly, it insists on discounts for certain groups of products and thirdly its members share information on their prices, discounts, etc. For example, if one member of alliance has been offered low prices others can automatically count on the same.

Activities of the extended alliance have already brought fruit. Ketchup producer Baltimor at last agreed to work directly with the chains and its products returned to the shelves of Perekriostok and Kopeyka. Direct cooperation with Baltimor led to cutting purchasing price by more than 10 per cent. Ukrainian Nemiroff is expected to take similar action by September 15. Otherwise, its production will disappear from supermarkets of alliance. Among other goals of the alliance are such producers as Korkunov confectionary, Kampomos and Procter & Gamble.

Overall turnover of the three chains in 2005 is to approach USD2 billion, Oleg Zherebtsov commented. That will allow us to dictate our own terms to suppliers, he stressed.