Information for fruit and vegetables business in CIS
The quantity of supermarkets in Uzhgorod will be doubled in January 2005
In January 2005 the quantity of supermarkets should be doubled in Uzhgorod, according to the information provided by Maksim Yenchenko, Market Information Specialist of Zakarpattya office, Agricultural Marketing Project (AMP).
To the present moment only two supermarkets are working in Uzhgorod, the total trading area of which is about 2,400 m2. "Vopak" supermarket is now the largest store with trading area of 1,500 m2, it works in the classic supermarket format. Joint Ukrainian-Slovak enterprise Volynpak, which business is production and wholesale trade of food stuff, owns this supermarket. Supermarket "Ambar" works in cash & carry format, it has twice lesser trading area (about 900 m2).
In January 2005 it is planned to open a new supermarket "Kontinent" of 2,000 m2 of trading area in one of the dormitory suburbs; it is expected to be the largest store in Zakarpattya for a while. As experts inform, this supermarket will work in cash & carry format. In the same month, in January 2005, the second store of "Vopak" supermarket chain with the trading area of 400 m2 is planned to be opened in the center of Uzhgorod, according to the information of Maksim Yenchenko.
As to evaluation done by Agricultural Marketing Project, "Vopak" is one of the largest supermarket chains in the western regions of Ukraine. As AMP specialists have accounted, there are 11 stores in this chain operating in Volyn, Ivano-Frankivsk, and Zakarpattya oblasts. New "Vopak" in the center of Uzhgorod will be the 12th store of this supermarket chain.
With the account of the fact that population of Uzhgorod is about 120,000 people, in this town from 8 to 12 supermarkets are able to function successfully. Since any of the national supermarket chains have not been working in the region, we can presuppose their entry to this market during the next two years.
The specialists of Zakarpattya AMP office inform that one of the most "problematic" positions for the supermarkets in this oblast remains the supply of fresh vegetables and fruits, despite of the fact that Zakarpattya is a traditionally good producer of high quality fruit and vegetable commodities. The absence of the developed wholesale trade structures, storing and post harvest handling of fruit and vegetable commodities makes the supermarkets work with the individual farmers. This fact results in the insufficient assortment, the problems with the quality, transportation and off-season vegetable supply. The supermarkets often have to undertake the calibrating, washing and packing practices for the supplied vegetables.
The serious problem for vegetable marketing in the supermarkets is the issue of WAT; as the majority of farmers are not WAT payers, supermarket has to add 20% to the purchase price; it makes worse their competitive position comparing with bazaars. The other way is to pay 20% lesser to the supplier that means no interest to supply fruits and vegetables through this sales channel.
At the same time, despite of all difficulties, the market players understand that fruit and vegetable merchandizing is sure to pass to the civilized form of trade - supermarkets - sooner or later. Agricultural Marketing Project from its side makes all possible to promote the vegetable trade in supermarkets: AMP specialists conduct round tables for the representatives of supermarkets and farmers; study trips and marketing surveys for defining the most successful forms of cooperation of a farmer and a supermarket.