Prodmix Is Going To Become Perekriostok: The Two Sides Are Discussing Franchising

Retail chain Perekriostok, owning 63 supermarkets in Moscow and 12 - in the regions, can soon unite under its brand several new retailers in the Russian capital and its nearest residential suburbs. As Retail.ru has learned, a small Moscow company Prodmix-D is in negotiations on purchasing Perekriostok’s franchise. In case negotiations turn out to be successful, 8 Prodmix stores will be renamed and Perekriostok will get a serious competitive advantage, as it is well known that Prodmix enjoys good attitude of Moscow authorities.

Retail chain Prodmix was created in 1997. At first it positioned itself as a “light discounter”, but very soon its shops were transformed into the ‘stores round the corner’ with 4000-4500 SKU and average sales area of 350 square meters. In 1999 Moscow mayor Yuri Lujkov granted Prodmix the status of municipal stores chain with a package of social benefits.

The two chains already have positive experience of cooperation. Perekriostok leases one of the biggest Prodmix supermarkets Maxi Mix in Grin Street, Severnoye Butovo, for its mini store - Mini-5. Moreover the management of two chains has the common history: present director general of Moscow Hercules chain Sergei Shvedov once used to work as director general in Prodmix and as commercial director in Prerkriostok.

In case Prodmix is to develop under the brand of Perekriostok, the latter will find itself in the situation of 2001 when together with Moscow administration it planned the development of a Mini-Perekriostok-chain in the form of ‘stores round the corner’. But in spite of the fact that, according to unoficial sources, Moscow authorities offered almost complete funding for the project, it was forzen when only several stores were open. Yet in May 2003 Perekriostok returned to development of the ‘stores round the corner’ format and now there are already 9 mini-Prerkriostoks in Moscow. The deal with Prodmix is going to enable Perekriostok to double the present number of its mini-stores and spread them into the suburbs. At the same time the similar project by Sedmoy Kontinent known as ‘Sem Shagov’ (14 stores) can be bound to catch up.

Retail chain Perekriostok, owning 63 supermarkets in Moscow and 12 - in the regions, can soon unite under its brand several new retailers in the Russian capital and its nearest residential suburbs. As Retail.ru has learned, a small Moscow company Prodmix-D is in negotiations on purchasing Perekriostok’s franchise. In case negotiations turn out to be successful, 8 Prodmix stores will be renamed and Perekriostok will get a serious competitive advantage, as it is well known that Prodmix enjoys good attitude of Moscow authorities.

Retail chain Prodmix was created in 1997. At first it positioned itself as a “light discounter”, but very soon its shops were transformed into the ‘stores round the corner’ with 4000-4500 SKU and average sales area of 350 square meters. In 1999 Moscow mayor Yuri Lujkov granted Prodmix the status of municipal stores chain with a package of social benefits.

The two chains already have positive experience of cooperation. Perekriostok leases one of the biggest Prodmix supermarkets Maxi Mix in Grin Street, Severnoye Butovo, for its mini store - Mini-5. Moreover the management of two chains has the common history: present director general of Moscow Hercules chain Sergei Shvedov once used to work as director general in Prodmix and as commercial director in Prerkriostok.

In case Prodmix is to develop under the brand of Perekriostok, the latter will find itself in the situation of 2001 when together with Moscow administration it planned the development of a Mini-Perekriostok-chain in the form of ‘stores round the corner’. But in spite of the fact that, according to unoficial sources, Moscow authorities offered almost complete funding for the project, it was forzen when only several stores were open. Yet in May 2003 Perekriostok returned to development of the ‘stores round the corner’ format and now there are already 9 mini-Prerkriostoks in Moscow. The deal with Prodmix is going to enable Perekriostok to double the present number of its mini-stores and spread them into the suburbs. At the same time the similar project by Sedmoy Kontinent known as ‘Sem Shagov’ (14 stores) can be bound to catch up.