Lenta to acquire three stores and three land plots from O'Key Group
Lenta, the Russian supermarket chain, has signed a purchase agreement with OKey Group to acquire three new stores and three land plots.
All three stores will become Lenta standard format hypermarkets with two situated in Chelyabinsk and one in Volgograd. Construction and fitting out of the Volgograd store has been completed and one of the Chelyabinsk stores is ready for fit out. The second Chelyabinsk store is in the final stages of construction. All three stores are expected to open in 2015.
The additional land plots are in Chelyabinsk, Omsk and Taganrog. Lenta expects to build new hypermarkets on each of the plots within the 2016-17 timeframe.
The company currently has one hypermarket in Chelyabinsk, two in Volgograd, four in Omsk and one in Taganrog.
Lenta’s chief executive Jan Dunning said: “The deal will strengthen Lenta’s position in Chelyabinsk, Volgograd, Omsk and Taganrog - all cities where we are already present. It also enhances our already strong new store pipeline, enabling an increase in our guidance to at least 28 new hypermarkets in 2015.
“In addition to supporting top line growth, the new stores will also help us realize additional supply chain efficiencies by increasing utilization of our DC in Rostov and a new DC under construction in Ekaterinburg which is scheduled to open later this year.”
The company expects to grow its hypermarket openings to more than 31 in 2016 with a similar or higher pace of expansion maintained thereafter.
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