Sinking of Siberian Armada

Armada, a local Russian DIY chain, is closing its branches in and around the Siberian city of Krasnojarsk. The explanation for this step given by co-owner Konstantin Sentschenko to the NGS Novosti regional portal was that the small format has simply been overtaken. The first of the five Armada stores had to be closed down in 2012, and this was to be followed by a reorganisation of the network. Triggering the plan was the opening in February 2012 of Leroy Merlin’s biggest store, an outlet of 18 000 m², in Krasnojarsk. Already during the opening the management announced its intention to put the fear of God into the competition and win over customers with the lowest pricing and friendliest service possible. Now the pressure on Armada seems to have become too great. Another outlet has already been abandoned, while the three remaining stores have started their clearance sales and are to close as soon as they are over.