Strategic alliance in Russia

Ten Russian DIY chains with predominantly regional operations and a combined total of 87 DIY stores have joined forces in an association under the name of Soyuz DIY. The most prominent member is Trest SKM with the trading brands Superstroi, Stroi Arsenal and Bravy Brigardier. Rinat Mukhametvaleev, managing director of Trest, has taken on chairmanship of the board. The background to this strategic alliance is the dissatisfaction of Russian DIY retailers with the supremacy of foreign home improvement companies; the best-performing DIY stores in Russia are Leroy Merlin (France), Obi (Germany) and Castorama (France/Britain). The alliance’s main objective is to do their buying jointly, with the goal of achieving a reduction in store prices of between five and ten per cent. Moreover the members intend to cooperate in matters of retail technology and logistics. Altogether they are pursuing the goal of further expansion in the regions and strengthening the Russian DIY and home improvement companies.