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"Smaller formats the way of the future"

Russian retailer thrives in complicated financial climate

Since its first store opened in 1999 in Moscow, Dixy Group has grown to be one of Russia's leading food retailers. As of May 31, 2016, the Group operated 2,600 neighborhood stores in 750 localities in Russia. Despite operating in the recent difficult economic climate, the Dixy Division currently exceeds 80% of the Group’s revenues.



Juan Giralt Silva, Vice-President for Commercial of DIXY Group, attributes attention to all areas of its operation as the key to its success. The product offering is tailored to provide customers with everything they might need close to home. Dixy actively invests in promotional activities, offers its customers up to 50% discounts on popular and seasonal goods on a weekly basis, conducts large-scale promotion programs, develops its own brands, and also hands out prizes and gifts. The chain sources 90% of its products from Russia which allows them to keep logistics costs down which is reflected in the price.

"We realize that regardless of the economic realities, the emotional factor is one of the key factors in consumers’ choice of the store to visit, especially for daily shopping. Therefore DIXY maintains customer service standards, regularly conducts trainings on customer service principles for its employees covering all areas of their work, from personal appearance to communications with customers and obtaining feedback." said Juan Giralt Silva.

Offering different formats to fit a broad market
The Group has been developing the Megamart compact hypermarket format and the Minimart supermarkets in the Sverdlovsk Region and Ekaterinburg for over 15 years now, with a broad assortment of regional products and steady growth in the number of loyalty card owners.

The Victoria Division supermarkets, which are developing in the Moscow Region and Kaliningrad Region, have a strong focus on a wide and high quality perishable offering, with an emphasis on the ready to eat range of products that are produced in-store.



The neighborhood store, which Giralt believes is relevant in any economic environment, offers a selected range of quality products at a low price, including house brands and aggressive promotional activities.

"We support multi-format trade. Each of the formats has its own advantages and its own target population. For example, a hypermarket is a store customers visit once a week to make purchases for a week or two ahead, selecting mostly long-lived commodities. Neighborhood stores, on the other hand, are visited frequently to purchase convenience goods, fresh bread, vegetables and fruit, chilled meat and poultry – the products you can’t buy in advance. Nevertheless, I believe the future will belong to more convenience, smaller format stores." concludes Juan Giralt Silva.

For more information:
Anastasia Orlova
DIXY Group
Tel.: +7 495 933-14-50
Fax: +7 495 933-02-59
Email: A.Orlova@hq.dixy.ru
www.dixygroup.com