Further consolidation is likely in the Russian grocery industry in the coming years, particularly as larger retailers expand their geographical footprint, Lenta chief financial officer Rud Pedersen has said.
In a media call following the announcement that Lenta is to acquire the assets of Billa Russia, Pedersen said that it was an "opportune time" for further consolidation, with the country's federal retailers being among the main beneficiaries of increased shopping spend during the pandemic.
"I believe there will be consolidation, simply because retail is partly driven by economies of scale," Pedersen explained. "Hence, there is a competitive advantage for those retailers that are large, can negotiate better terms and conditions with suppliers, and can have a more efficient operating model, which is difficult for smaller retailers to compete with."
