Volgograd MAN retail chain put up for sale

Regional Profile Volgograd located at the Middle Volga region has become one of the most attractive directions for the expansion of retail business. The population of the city exceeds 1 mln. The retail turnover of Volgograd in 2003 totaled RUR 37.5 bln (about $1.25).

Competitive profile Intense development of Volgograd retail sector set off late 2003 with Pyaterochka’s appearance on the local market. At that time the local chains started struggle for sales premises that effected in opening of more than 90 food shops here in 2004. Thus, last year Magnit opened in the region 18 outlets, Radezh – 15, Pyaterochka – 38, MAN – 11. For now regional food retail market is represented by 200 chain food stores with Magnit operating 88 shops, Radezh – 45, Pyaterochka – 38, MAN – 19, Econom (Volzhsky town) – 14. It is to be mentioned that all these chains work is the same price segment targeted at low income customers. Federal retailers, working in the different format, are represented in Volgograd by Perekriostok supermarket in Park House shopping centre.

Volgograd MAN retail chain put up for sale, Retail.ru has learned. The chain operates 19 shops of different formats. The deal can be completed as soon as in the second half of 2005. According to the chain’s owner Andrey Vorobyov, among the MAN’s potential buyers are such largest operators in the region as Magnit, Radezh and Pyaterochka. The sum of the deal is estimated at RUR150 mln which is close to the chain’s month’s turnover. As a result of the deal, the buyer will get the MAN’s leasing rights as well as its shopping equipment, while the chain will preserve its premises. Andrey Vorobyov informed that the reason for the sale is MAN’s decision to switch to the other sphere of business due to the growing competition in retail sector.

Regional Profile Volgograd located at the Middle Volga region has become one of the most attractive directions for the expansion of retail business. The population of the city exceeds 1 mln. The retail turnover of Volgograd in 2003 totaled RUR 37.5 bln (about $1.25).

Competitive profile Intense development of Volgograd retail sector set off late 2003 with Pyaterochka’s appearance on the local market. At that time the local chains started struggle for sales premises that effected in opening of more than 90 food shops here in 2004. Thus, last year Magnit opened in the region 18 outlets, Radezh – 15, Pyaterochka – 38, MAN – 11. For now regional food retail market is represented by 200 chain food stores with Magnit operating 88 shops, Radezh – 45, Pyaterochka – 38, MAN – 19, Econom (Volzhsky town) – 14. It is to be mentioned that all these chains work is the same price segment targeted at low income customers. Federal retailers, working in the different format, are represented in Volgograd by Perekriostok supermarket in Park House shopping centre.

Volgograd MAN retail chain put up for sale, Retail.ru has learned. The chain operates 19 shops of different formats. The deal can be completed as soon as in the second half of 2005. According to the chain’s owner Andrey Vorobyov, among the MAN’s potential buyers are such largest operators in the region as Magnit, Radezh and Pyaterochka. The sum of the deal is estimated at RUR150 mln which is close to the chain’s month’s turnover. As a result of the deal, the buyer will get the MAN’s leasing rights as well as its shopping equipment, while the chain will preserve its premises. Andrey Vorobyov informed that the reason for the sale is MAN’s decision to switch to the other sphere of business due to the growing competition in retail sector.