Russian network Fix Rgse will open stores abroad

New countries

The first foreign store network Fix Price will be opened in early April of 2016 in Georgia, told RBC General Director of the network Dmitry Kirsanov. To open the first foreign point will be the local franchise partner, which the company did not call. Later will run the shop Fix Price in Kazakhstan, partner of this country are also found, said Kirsanov. Partners in the CIS countries can open unlimited number of stores under the brand network, the number depends on its capabilities and needs in the region, says a top Manager.

“Brand Fix Price registered in almost all European countries, — said Kirsanov. — If this year we will find partners in Armenia, are technically ready to open a store there, Georgia, Kazakhstan and Armenia — the countries where the customers are not severely different from consumer behaviour”. Now the company is considering opening in our countries of the former USSR, he explains. In the future, Fix Price, you may go to the Baltic countries. “But it’s a bit more complicated than going out, for example, in the countries of the Customs Union where there are no barriers, real boundaries and duties,” says Kirsanov.

In neighbouring countries direct competitors in Fix Price will not in fact — the model of the hard discount stores with fixed prices practically implemented even in Russia, said General Director of “InfoLine-Analytics” Mikhail Burmistrov. The nearest competitor Fix Price, network Oscar Hartmann “at the same Time” only began to develop and now has only a few dozen points. Last fall in Russia came the first foreign network such format German Euroshop. However, now has, according to the official website, only 13 stores in the Moscow region, Nizhny Novgorod and Saransk.

What is Fix Price

Fix Price — the largest Russian network of shops fixed prices, the majority of goods now costs 50 rubles. the First stores were opened in 2007 with the slogan “All for 30 rubles”. The main shareholders of the company — the co-founder of the network “Kopeyka” Sergey Lomakin and Artem Khachatryan. Among the shareholders of the investment Fund Quadro Capital, a small fraction is ten top-managers of the network, including CEO Dmitry Kirsanov. Shares of shareholders are not disclosed. The chain’s earnings in 2015, according to the company, amounted to 61.2 billion rubles (including VAT). Network two years in a row is included in the rating of RBC “50 fastest growing companies”.

The franchise for three years

Fix Price now has 2097 shops. Of these, about 400 work on franchising. Operating company network, “best Price”, always gets 25% of the share capital of the company-the franchisee. With the majority of franchisees (approximately three-quarters of stores) “best Price” also negotiates the right of redemption of their store after three years, according to a specific pricing formula which was not disclosed.

Lump sum payment (one-time payment to the owner of the franchise when buying), according to the company, such scheme is 300 thousand rubles, royalty — 3-4% of turnover. The opening of one store with an average sales area of 200-300 sq. m costs about 5 million rubles, the payback period is less than a year, says Kirsanov.

There is another scheme of work with partners in which the parent company does not redeem partner points. In this case, the amount of the lump sum payment and royalties higher. Now according to this scheme open shops in regions in which in the next five years Fix Price is not going to develop on its own: for example, in the far East. “There is not yet reach our logistics arm, so those whom we are now engaged, is a project of “perpetual franchise” jokes Kirsanov.

The decision on whether “best Price” to buy up overseas stores, is still pending, this issue the company will discuss with foreign partners Jerez a year after the start of the pilot stores.

Only in 2016 Fix Price plans to open about 300 stores, and in the coming years to run for 300-500 points. Development potential in Russia for the network is estimated at 5,000 stores.