December 7 2007, 10:20

First "Auchan" hypermarket is opened in Krasnodar

"Auchan" hypermarket, the first of the kind in Krasnodarskiy Kray, was opened yesterday in Krasnodar on the territory of trade-entertainment center "SBS". The hypermarket became the anchor renter of the trade complex. The experts believe that new player has good chances to occupy sustainable position on the regional market thanks to traditionally rigid price policy and a high demand for hypermarkets which format "Auchan" develops.

"Auchan" in Krasnodar is the seventeenth hypermarket of this chain in Russia. The new store is the largest on the territory of the Southern Federal Okrug. The total square of the building is 24,200 sq. meters, the commercial area is of 22,000 sq. meters. According to Alexander Grishayev, the representative of "SBS" company, which hosts new hypermarket, more than RUR 1.2 billion were invested to the hypermarket construction. Closed JSC "Raffeisen Bank" is the major investor of the project. The planned period of the project to pay back is not disclosed.

Mr. Grishayev pointed out that "Auchan" occupied the vacant segment on Krasnodar market - "the weekend discounter". He observed that the hyper-segment has not been well developed yet in Krasnodar. The interviewee of Kommersant mentioned only METRO Cash&Carry store as the main competitor of "Auchan" here. However, he added that the positions of some large local hypermarkets-discounters may falter. Such stores in Krasnodar are "Magnit" and "Okey". The representatives of Closed JSC "Tander" ("Magnit" chain) and "Okey" company (the founder is Dorinda Holding S.A.) did not comment Mr. Grishanov's opinion.

The employee of METRO Cash&Carry company (asked not to mention the name) supposed that "Auchan" would compete with "old-timers" of Kuban market exclusively due to the price policy. The prices in the stores of this chain are as a rule 10-20% as low than the average market prices. Some time ago "Auchan" was claimed for dumping; however, Russia has had no legislative basis yet able to regulate the application of dumping technologies. Nevertheless, the interviewee of "Kommersant" is sure that the large format retailers won't lose their positions: ""Auchan" format may be defined as the hypermarket-discounter - there are lots of trade items, although they are represented by only 1-2 types ".

Michail Burmistrov, the Manager of Analytics Department, Information Agency INFOLine estimates the chance of "Auchan" to be successful in Krasnodar as high. "The city has significant potential for the same of large-format stores to increase. As for the price policy, this chain is one of the most rigid retailers", he observed. According to estimation done by M. Burmistrov, the project may pay back in 4-6 years.

According to Alexander Gribkovskiy, General Director of "Avtoritet" real estate agency, the competitive advantage of "Auchan' chain over the local retailers is also predetermined by the fact that the chain can count on the significantly reduced rent payments in "SBS" center. "Auchan" is a long-term renter, which is able to guarantee the stable cash flow to "SBS" center and to attract additional visitors. That's why the management of "SBS" can afford making concessions", the specialist thinks.