Growth strategy

Aiming to double selling space over the next three years

The key drivers of our mid- to long-term growth strategy:

Delivering profitable like-­for-­like growth:

Leverage data-driven customer insights from loyalty card to improve conventional commercial approach and to add new tools to the commercial toolkit:

  • Know the relevant basket of our customers to drive price checks and pricing decisions
  • Promotions management: know which offers are appreciate by which customers and how they react on pricing of the offers

  • Category management: make assortment decisions based on understanding of customer needs and the changes in these needs

  • Merchandizing and store layout: design the store around the shopping behavior of our most important customers

  • Regular mass media marketing decisions

  • Develop direct marketing tools using various media: coupon at till, e-mail, SMS, regular mail, self-service kiosks in store.

Strengthening existing presence:

  • Target to be the first or second in terms of local market share:

  • Leverage existing brand equity to deliver faster ramp up of new stores

  • Leverage existing local expertise and supply chain infrastructure;

  • Deepen penetration in existing markets using multiple formats of stores to come closer to the customer and to add more convenience

  • Improve service levels in existing stores with too high sales pressure by opening new conveniently located stores for existing and new customers.

Exploiting white space potential:

  • Enormous untapped potential of cities with no federal hypermarket or no Lenta hypermarkets;

  • Continue the fast roll-out of Lenta hypermarkets nationally;

  • Deepen existing presence in the Central, North-West and Siberia federal districts, while accelerating expansion in the Volga, South and Urals federal districts;

  • Primary focus on the cities with >100,000 population where Lenta has no stores currently.

Format evolution:

  • Compact and supercompact formats in smaller catchment areas and to come closer to customers in big cities;
  • Further development of supermarket project in Moscow and the Moscow region.