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October 1, 2015

Lenta ranked fastest growing chain in Russia

Lenta has grown by 34.5% in the past year to earn the top spot in the annual INFOLine Retail Russia Top 100

St-Petersburg, Russia; 01 October, 2015–Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, has been ranked by IA INFOLine, in its annual Retail Russia Top 100 report, as the fastest growing chain in Russia.

Lenta has grown by 34.5% since last year, increasing the number of stores by 45 and as such, the selling space by 196,100 sq. m. Lenta now employs over 35,000 people across Russia, with 121 hypermarkets in 63 cities, 27 supermarkets in the Moscow region and its headquarters in St. Petersburg.

Ivan Fedyakov, Director of the INFOLine Information Agency, considers the following three basic principles key to Lenta’s success in maintaining positive growth rates during the current crisis.

Firstly, effective supply chain management. Lenta has 1.5 to 2 times fewer SKUs than its competitors. Furthermore, revenue per square metre of selling space is comparable to competitors. High product turnover means there is minimal product mark-up, this is extremely important for Russian consumers experiencing a decrease in purchasing power.

Lenta have taken a strategic approach to developing private-label goods According to Ivan Fedyakov, “In times of crisis a lot of chains start actively developing private-labels, Lenta entered this period already well prepared”. The wide variety of private-label products in both food and non-food categories available in stores, in the Lenta and 365 Days brands, means that different groups of consumers can be targeted.

Lenta’s active investment program is another reason for its success, there is a strong focus on constructing hypermarkets in the regions where demand is highest.

Ivan Fedyakov explains; “In 2015, in Russia, the number of FMCG hypermarkets will exceed 1000 for the first time. Although this is a large number, we can only talk about primary market saturation when the number exceeds 1500 stores.”

At the beginning of 2015 Lenta attracted $225 million on the London Stock Exchange, which the management plan to invest in development of the business. According to INFOLine analysts, this will help to drive positive development dynamics in the future.

The Company announced earlier this year that it is planning to open 25 hypermarkets by the end of 2015, following the announcement of the first half-year results; the company improved this forecast to a minimum of 28.

The INFOLine Retail Russia Top-100 is compiled by IA INFOLine experts annually. The operations of no fewer than 1000 Russian companies are analysed. They come from all Russian regions and from different FMCG sectors: household appliances and electronics, DIY, household and furniture, children’s goods, cosmetics and perfume, pharmaceuticals, fashion and mobile phones.

About IA INFOLine
The information agency INFOLine (www.infoline.spb.ru) was founded in 1999 for the purpose of providing information and advisory services to commercial organizations. It provides information support to over 1000 companies in Russia and globally. The INFOLine agency monitors over 7000 sources: information agencies, news outlets, central and regional media (both electronic and printed), specialised portals.

There is a constantly updated media database compiled by INFOLine which contains over 1500 verified contact details of journalists and specialists who are responsible for cooperation with different PR services. The database includes leading business print publications, information agencies, industry media and regional press.

About Lenta
Lenta is one of the largest retail chains in Russia and the country’s second largest hypermarket chain (in terms of 2014 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 122 hypermarkets in 63 cities across Russia and 27 supermarkets in the Moscow region, with a total of approximately 787,807 sq.m. of selling space. The average Lenta hypermarket store has selling space of approximately 6,200 sq.m. The Company operates five hypermarket distribution centres.

The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 30,655 people as of 30 June 2015.

The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’.

A brief video summary on Lenta’s business and its Big Data initiative can beseen here.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Yana Mogileva, PR Manager
Ňel:+7 (812) 336 39 97
E-mail: yana.mogileva@lenta.com

Instinctif Partners
International Media:
Mark Walter and Saule Jandossova
Ňel:+44 (0)20 7457 2020
E-mail: Mark.Walter@instinctif.com

Primum
Russian Media:
Alexandra Semenova and Nikolay Konchurkov
Ňel:+7 926 903 9975
E-mail: NKochurkov@primum.ru 

 

 

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