Dixy, the Russian neighbourhood store, intends to increase the share of private label goods in its turnover from 15.5% in 2016 to 25% by year's end.
The chain expects to achieve the nearly 150% increase due to renewal of its existing product lines and the appearance of new unique brands in strategically important categories
The store claims that own brand products constitute a real competitive advantage and allow the chain to differentiate its assortment.
Own brands will also be emphasised in the chain’s promotion and marketing strategy, including a move toward eco-friendly packaging, as detailed in our previous report.
Food And Non-Food Lines
On top of their own brand food products, the chain has also launched a number of non-food brands. In particular, it expanded its assortment in the hygiene products category.
The chain’s offer of beer and wines is also going to be increased, with the share of own brand wines sales turnover reaching 30%.
The total number of product articles will exceed 700 by the end of 2017.
Importance Of Local Partners
“The development of this area is impossible without close cooperation with local partners. Russian enterprises currently produce 90% of our own brands, and the chain is prepared to expand the cooperation. In 2017, we are going to launch new brands and will continue to seek partners for our existing projects,” says Elena Savchenko, own brands administration director of Dixy Group.
As of December 31, 2016, Dixy Group had 2,802 stores under operation, including 2,646 Dixy convenience stores, 116 Victoria stores and 40 compact hypermarkets MegaMart and MiniMart, all located in 778 Russian towns and settlements. In 2016 the Company’s total revenue amounted to RUR 311 billion.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Gavin Ryan. Click subscribe to sign up to ESM: The European Supermarket Magazine