Ukrainian supermarket chain ATB ranks among top 3 discount supermarkets in Central and Eastern Europe
Ukrainian discount supermarket chain ATB now ranks among top three supermarkets in Central and Eastern Europe, according to investment company Colliers’ ExCEEding Borders Retail Report 2021 published on Dec. 21.
Another Ukrainian discount store, Aurora is one of the top three non-grocery discount retailers in the region.
The report looks at the retail situation and development prospects in Central and Eastern Europe and covers 16 local markets, including Ukraine, Poland, Romania and others.
“There is a very precise business model behind a discount supermarket,” Colliers Ukraine retail real estate expert Ihor Zablotsky told the Interfax-Ukraine news agency on Dec. 21.
“It offers standardized retail outlets with a stable assortment of goods. Modelled in such a way, discount supermarket chains aim at a maximum decrease in the net cost of opening new outlets. Compared to other supermarket chains, discounters can halve the cost of opening a new store.”
Zablotsky also added that the cost cutting advantage enables discount supermarket chains to open new outlets in close proximity and in convenient locations for consumers.
According to the report, there are over 30 discount grocery retail chains in Central and Eastern Europe. The biggest chain is the Poland’s Biedronka, operating 3,000 supermarkets . The second largest supermarket chain, owned by Schwarz Group, is Germany’s Lidl, with over 2,000 outlets. Ukrainian discount grocery retailer ATB comes third with almost 1,500 supermarkets in its chain.
Apart from Lidl and Kaufland, other German retailers are rapidly expanding in Central and Eastern Europe. Aldi is getting bigger in Poland and Hungary, while Penny has a growing presence in the Czech Republic.
Nearly 15,000 discount grocery retail outlets have been opened in Central and Eastern Europe over the last two years.
There are also almost 50 chains of non-grocery discount retailers in the region. The largest one is Pepco, with almost 3,000 outlets in 11 countries, followed by KIK with 1,000 outlets in eight countries, and Ukraine’s Aurora with 650 outlets. Pepco also owns the Dealz brand, with almost 100 stores in Poland.
In June this year, the Emerging Europe Growth Fund III was granted permission to buy Aurora from Poltava businessman Lev Zhydenko.
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