Russian retail chain Lenta has agreed to purchase 22 supermarkets in the Siberia region from the Holiday Group.
The retailer is buying 22 stores, currently operating under the 'Holiday Classic', 'Kora' and 'Holdy' brands. Eleven of the stores are in Novosibirsk, seven in Kemerovo, and four in Barnaul.
The total selling space of the acquired stores is around 18,000 square meters, with around 800 square meters per store.
The stores are expected to transfer before the end of 2017 with some temporary refurbishments and rebranding expected until the end of March 2018.
"This transaction will significantly strengthen our network in Siberia, giving many more customers the opportunity to shop at a Lenta store close to their homes. The stores all have good urban locations and are complementary to Lenta’s existing network,” said Jan Dunning, CEO of Lenta.
“Siberia is an important region for Lenta," Dunning added. "The company opened its first hypermarket in Novosibirsk in 2006 and its first supermarket in the city earlier this year. We currently operate 36 hypermarkets and 4 supermarkets across Siberia, served by our distribution centre in Novosibirsk.”
Growth and Expansion
The acquisition follows a period of strong growth and expansion for the Russia’s fourth largest retail chain.
The company has seen marked sales growth in the recent quarter. It posted 18.7% total sales growth, increasing to RUB 89.6 billion. During the same quarter, it opened six new hypermarkets and five supermarkets.
“While Lenta remains primarily focused on organic expansion, we are happy to supplement this by acquiring high quality existing stores when suitable opportunities arise," said Dunning.
"We have a strong track record of successful integration and look forward to welcoming former Holiday store employees into the Lenta family.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: The European Supermarket Magazine.