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Technology

Russia's Vkusvill To Trial New Store Formats Alongside Delivery Push

By Reuters
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Russia's Vkusvill To Trial New Store Formats Alongside Delivery Push

Russian retailer Vkusvill said it was targeting further growth in its delivery service this year and would test new store formats, after recording a rise in revenue and sales in 2022.

A high-end retailer and food producer, Vkusvill operates more than 1,300 shops across 70 Russian cities and was one of several Russian companies considering an initial public offering (IPO) this year before the conflict in Ukraine thwarted its ambitions.

E-scooter firm Whoosh staged Russia's only IPO of 2022 in December, raising less than originally hoped in a market now deprived of Western capital and depending ever more on retail investors.

"The last year was difficult (as I think it was for everyone), but Vkusvill was flexible and thanks to its loyal audience, it coped and showed growth," Alena Nesiforova, Vkusvill's unified concepts manager, said in a statement.

Online Sales

The retailer's deliveries almost doubled in 2022 to more than 70 million orders, Vkusvill said. Online sales growth jumped 77% year-on-year, with overall sales climbing 26%.

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Total revenue rose to RUB 204.8 billion ($2.93 billion), the company said. That was up from RUB 162.2 billion in 2021, according to filings on the Interfax news agency's SPARK database of Russian companies.

Evgeniy Rimskiy, quality and purchasing manager, said Vkusvill would be seeking to find new growth opportunities in 2023, and while continuing to expand its delivery business, which now accounts for 39% of total revenues, it would also be testing new offline formats.

In June of last year, Vkusvill announced the launch of nationwide delivery from its darkstore in Moscow with two partners for products with long shelf life, in an effort to reach consumers in more far-flung locations.

News by Reuters, edited by ESM – your source for the latest technology news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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