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Lenta Signs Strategic Partnership With Li & Fung

Published on Dec 18 2018 8:29 AM in Retail tagged: Lenta / Russia / Hypermarkets / Li & Fung

Lenta Signs Strategic Partnership With Li & Fung

Russian hypermarket operator Lenta has signed a strategic partnership with Li & Fung, a global sourcing agency for non-food products.

The agreement will focus on upgrading Lenta's non-food ranges, as well as improving the supply chain for non-food products for the group's stores.

Li & Fung will be responsible for ensuring vendor compliance, initiating product development and assisting with shipments from Asian countries.

Product Differentiation

“Differentiation and distinctiveness are a key to successfully winning customers in the current market," said Herman Tinga, Lenta's chief executive.

"We believe that our non-food ranges contribute to a value proposition that will help us attract and retain customers. We want to consolidate our position through distinctive product ranges, and improved agility and speed when reacting to demand shifts. Cooperation with Li & Fung will significantly improve our ability to achieve these goals, as well as enhance our performance across the entire supply chain.”

Lenta said that it expects the cooperation agreement to enable the company to introduce at least 2,000 new SKUs to its assortment, as well as significantly cut lead times.

'Cooperation with Li & Fung will improve Lenta’s agility and speed when reacting to consumer demand in the non-food segment, as well as open new opportunities for differentiation in the segment,' it said.

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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