Russia's O'Key Group Puts Focus On 'Profitable' Discount Channel: Analysis
Having offloaded its supermarket business to X5 Retail Group, Russia's O'Key Group is now focused on growing its presence in the discount channel, according to its annual report.
Announcing an increase in total group revenue of 1.1% last year, to RUB 177.4 billion (€2.5 billion), O'Key chief executive Miodrag Borojevic said that the competitive retail environment in Russia has led to it focusing primarily on its 'compact hypermarket' and discount channels.
While 2017 was a year that saw economic recovery in the Russian market, "aggressive selling space growth ahead of food retail sales continued to put pressure on the performance of more mature stores", he said.
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