Russia's X5 Retail Group has partnered with household retailer Hoff to test a shop-in-shop format in selected Karusel stores, as it seeks to expand its non-food offering.
Four X5 hypermarkets located in Moscow, the Moscow region, and St Petersburg have subleased floor space to Hoff Home for the summer to carry out the pilot project.
Hoff co-founder, Mikhail Kuchment, said, "We are convinced that Karusel customers will embrace our non-food expertise, while cooperation with the hypermarket format will increase our brand awareness by giving Hoff a presence in areas with high customer traffic."
A Karusel store in the Novorizhskoye highway has set up the first Hoff Home shop-in-shop in a 900 square-metre space in its premises.
Hoff shopping areas in other pilot hypermarkets will occupy a floor area of between 475 and 1,000 square metres, the retailer said.
An Optimum Mix
The product offering for the test phase is based on the analysis of customer preferences, and includes an optimum mix of household products inline with the store format.
It includes more than 3,500 SKUs in different styles and seasonal trends. The range offers tableware, textiles, household goods, interior and décor items, and carpets.
X5 Retail Group CEO, Igor Shekhterman, commented, "X5 is continually looking to improve the offering for its hypermarket format.
"We expect the synergy between two leading players in their respective markets to improve the operational efficiency of the hypermarkets, boost traffic and customer loyalty for both companies," he added.
The decision to roll out the format in other outlets will depend on an in-depth analysis of the results of the pilot project, the retailer said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.