Strategy

We intend to pursue the following strategies in furtherance of our primary goal of maintaining and improving customer satisfaction and loyalty.

We believe that focus on modern hypermarkets allows us to capitalize on opportunities created in the under-penetrated and rapidly growing hypermarket sector of the Russian retail market. As one of the leading Russian hypermarket operators, we are well-positioned to take advantage of these opportunities offered by the Russian market in regions outside of St. Petersburg. In particular, we plan to further penetrate the Urals region, Siberia and Moscow region market, which is undersupplied by hypermarkets despite being the city with the highest retail turnover per capita in Russia.

Geography
Continue to expand hypermarket and supermarket footprint into Moscow and other Russian regions.
New «DA!» brand is entering the Russian retail market in 2015 and we are confident it will establish itself among the leading Russian food retailers.
The company intends to develop fast - in 2015 it will open 35 stores in Moscow and Moscow region. In the next 3 years the business has plans to expand dramatically throughout the region.
«DA!» chain represents a completely new type of food store, guaranteeing consumers the best price & quality ratio on the market. This is achieved by using the latest and most advanced retail equipment and world-class retail business processes.
Continue to develop product assortment
In our assortment strategy we target to develop further current product proposition, specifically in non-food, fresh and delicatessen segments and the strategy revolves around the following key goals:
  • Further increase the share of non-food (clothing, DIY, sporting goods and home appliances)
  • Work with local suppliers to customize assortment to local tastes / needs
  • Continue to perfect our product matrix in order to attract more customers and encourage more frequent visits
  • Position our private label as high quality at a competitive price
Support our supply chain through logistics
Fact Sheet

The goal of our supply chain is to facilitate availability of full assortment as we expand across Russia. As such we intend to continue developing logistics for import and private label operations, in order to ensure that a wide assortment of popular products is consistently available on store shelves. As the density of our stores grows in a particular city, we plan to set up a cross-docking platform in that area. Such a network of cross-docking platforms will allow it to support its anticipated growth by ensuring availability of a wide range of products, improve efficiency of operations and strengthen our competitive position.

Implement innovative IT solutions to strengthen supply chain, inventory and category management

We began optimizing our information technology systems in August 2009 by implementing an advanced retail management suite which will streamline and automate the whole product selection and offering process (from supplier negotiations, assortment and pricing to delivery and trading space management). As a result of this mplementation we plan to establish a technological platform that will allow us to manage retail operations more efficiently, including demand forecasting as well as customer-focused category management and supply chain optimization.