DIY stores and supermarkets work in tandem

DIY store operators in Russia are working increasingly with supermarket chains on the opening of new outlets. The most striking example of this is Metrika, which boasts the biggest DIY store network in the country with over 100 branches. It has been cooperating with supermarket chains since 2009. Its biggest partner is Magnit, the biggest retailer in the Russian Federation with nearly 7 600 stores, including 165 hypermarkets. The company operates mainly in the west of the country. The two organisations have already entered into a strategic partnership in the cities of Velikiy Novgorod, Bryansk, Smolensk, Ufa and Nizhnekamsk. Although the DIY stores and supermarkets have their own consumer flows, each partner believes that these yield considerable synergies in respect of customer traffic, service offerings and customer loyalty programmes. Their competitors have also realised this, and so the Finnish Kesko Group recently acquired a site in St. Petersburg with the aim of uniting its brands K-Ruoka (groceries), K-Rauta (DIY) and Intersport under one roof there this year. The French Auchan Group is also opening more supermarkets in direct proximity to Leroy Merlin stores.