M.Video, a leading consumer electronics retailer, will open a network of outlets in Russian cities of less than 150,000 inhabitants, Telecom Daily reported last week. The limited-surface outlets will extend their restricted on-site assortment through POS electronic terminals that provide local customers with access to the retailer’s full catalog.
The first outlet of this type will open this summer, M.Video’s press service announced, with plans to deploy 35 similar sites across the country by the end of the year. The firm will invest some 35-40 million rubles ($1.2-$1.4 million) for each outlet, compared to 50 million rubles ($1.7 million) for a standard store.
More recently, major retailer Svyaznoy has begun offering electronic terminals in its outlets. Last year, it launched a new online-offline concept, Enter.ru, whose inventory – which includes furniture, sporting goods, children’s wares and jewelry – goes well beyond its core mobile phone and electronics business.
Earlier this year, the X5 Retail Group, the country’s largest retail group which operates more than 3,000 retail outlets throughout the country, generating more than $15 billion in annual sales, launched Е5.ru. This website offers a catalog of 392,000 items that can be picked up at the chain’s offline supermarkets in Moscow and St. Petersburg. According to the group’s business plan, courier delivery will account for just 10% of online sales.
“We are focusing on E5 as our main online retail channel,” Senior Investor Relations Manager Andrey Napolnov said in an exchange with East-West Digital News. “Using our stores as pick-up and payment points makes purchases very convenient for customers because of the chain’s size. Moreover, a part of E5’s assortment is available only online.”
In a reciprocical move, several online players have gone offline, as exemplified by Utkonos.ru, an e-commerce giant whose offline sales represent approximately one-third of its turnover.
Vseinstrumenti.ru, a leading player for tools and appliances for the home and garden, began opening offline stores as early as 2009. The network was deployed in 30 major and medium-sized Russian cities as of early 2012, with plans to cover 70 more cities in 2013.
In addition to its own offline stores, Vseinstrumenti.ru offers pick-up points in a range of other cities under agreements with third-party retailers.
- RUSSIAN E-COMMERCE REPORT 2012 – The total volume of Russian online retail reached 310 billion rubles, a little more than $10 billion, in 2011, up 25% from the previous year. EWDN’s research study of Russian e-commerce will be available soon. To receive free insights or to order the full version, please contact us at [email protected].
