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Supply Chain

Russia's Fix Price Opens New Distribution Centre

Russian value retailer Fix Price has opened a new distribution centre in the Dinskoy District of Krasnodar Krai to drive expansion in the southern regions.

The 68,000 square-metre logistics centre is the retailer's largest facility and will service eleven Russian regions.

These include Krasnodar Krai, the Astrakhan and Rostov regions, Stavropol Krai, and the republics of Adygeya, Kalmykia, Kabardino-Balkaria, Karachay-Cherkessia, Ingushetia, Dagestan and North Ossetia–Alania.

It will also offer cross-border services, supplying products to Georgia.

The distribution centre is in full operation, and the first batch of goods has already left the facility, Fix Price added.

'Regional Expansion'

Fix Price CEO Dmitry Kirsanov, said, "Fix Price continues to push for its regional expansion and plans to considerably increase the number of outlets, including in locations beyond Central Russia and in neighbouring countries.

"The new distribution centre in Krasnodar Krai will support the Company's growth in the Southern and North-Caucasian federal districts, which are currently home to around 700 Fix Price stores and almost 20% of the country's population. The DC will create over 400 jobs and ensure seamless supplies to more than 150 local cities and towns."

The roles in the distribution centre will include office staff, warehouse workers, pickers, engineers, quality control officers, among others.

Employees will benefit from various incentive programmes, including bonuses for working in summer and exceeding targets, welcome payments for new hires, and convenient corporate transport and free meals.

In addition, all warehouse employees will have modern electric pallet trucks to facilitate pallet handling and minimise the physical workload.

Highlights Of The Distribution Centre

The distribution centre is a built-to-suit project, tailored to cater to the retailer's needs.

It maintains an average temperature of 18–25 °C to safely store Fix Price's product mix, which does not include perishable goods.

The DC's cross-docking process enhances the efficiency of its operations by separating inbound and outbound areas.

Goods arrive in semi-trailer trucks and are then stacked into pallets to be shipped out by medium-duty trucks.

The facility offers 300 parking spaces for trucks and is estimated to handle 45 semi-trailer trucks and 75 medium-duty trucks per day.

Konstantin Fomichenko, regional director and head of warehouses, industrial and land department at Knight Frank, commented, "We expect retail turnover to continue growing rapidly for the next several years, making streamlined logistics crucial for a retail chain's smooth operations. Many major players are sparing no effort to expand their logistics infrastructure across Russia, and we expect over 850,000 square metres of warehouses to be brought to the market in 2021, with transactions covering over one million square metres.

"Fix Price's new distribution centre is among the largest facilities in Russia's regions. We are happy to see the Company partner with A2Group, which was able to meet the most stringent requirements for a modern industrial building."

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Supply Chain news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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