Myronivsky Hliboproduct (MHP) last week opened three new stores of the Miasomarket stores franchise chain in Oleksandriya and Novomyrhorod (Kirovohrad region) and Sumy.
According to the company’s press release on Monday, October 5, some 12 stores of a new format are already operating in Ukraine, namely, in Sumy, Kovel, Mykolaiv, Dubno, Cherkasy, Kropyvnytsky, Kyiv, Odesa, Novomyrhorod, Oleksandriya.
As reported, Myronivsky Hliboproduct intends to open about 50 retail outlets in different cities of the country by the end of 2020. The company opened the first Miasomarket store in Kyiv on September 18, 2020.
MHP is developing franchising formats such as Miasomarket stores, traditional Nasha Ryaba shops, Secrets of the Chief gastrostudio and shawarma points of sale. At the same time, MHP develops independently its sandwich shops “Kho bite? (the Baschynsky trademark).
MHP is the largest chicken producer in Ukraine. It also produces grains, sunflower oil and meat processing products. MHP supplies chicken carcass halves to the European market, which are also processed at its facilities in the Netherlands and Slovakia.
MHP’s net profit in 2019 increased by 1.7 times compared to 2018, to $215 million, while revenues increased by 32%, to $2.06 billion.
The agricultural holding Myronivsky Hliboproduct (MHP) plans to open 350 stores of the Miasomarket format in Kyiv city and the region in five years.
“In the next five years, 350 Miasomarket outlets should open in Kyiv city and the region. We also have a clear understanding of how many stores we want to open in five years in the regions – the number of outlets varies from 40, depending on the concentration of the population,” the head of the department for work with franchisees of the agricultural holding MHP Dmytro Morozov told Interfax-Ukraine.
According to him, in addition to the Miasomarket and Nasha Ryaba conventional stores, the company is now developing franchising formats such as the Chef’s Secrets gastronomic studio and shawarma points of sale, as well as sandwich shops “Kho perekusit?” (TM Bashchinskiy), which is the format that MHP develops independently.
“Investments of partners in the Myasomarkets project start at $25,000, for other formats, in particular Döner Market, we are now finalizing the size of investments,” Morozov said.
He also announced the official opening of the first point for the sale of shawarma in Kyiv, in the Osokorky residential area, on September 23.
The head of the department for work with franchisees of MHP said that the points will have different formats, both street food and with the possibility of seating inside the facility.
“As the project develops, we will add other formats of street food. We see for ourselves at least two more formats that will sell shawarma,” he said.
The official opening of the first point of the Chef’s Secrets gastro studio is scheduled for September 24. However, as Morozov specified, it has been operating in test mode since June.
Asked whether MHP plans to implement such projects abroad, Morozov said that now this initiative is at the stage of preliminary assessment of the need.
“The holding has divisions in other countries with which this issue has been discussed, but there are no concrete plans yet. We have shown how we launch Miasomarket stores in Ukraine, what is the essence of the concept, the value for the end consumer and business in general. Now it is a discovery stage, the stage of preliminary assessment of the need for such a project,” he said.
TB-Market LLC (Dnipro), owning the discount shop chain in Ukraine and part of the ATB Corporation, is not intending to adjust its plan to open new stores for 2020, Director General of ATB Corporation Borys Markov has said in a statement. “We do not change the plans for the opening of stores in 2020 we are working according to plan. However, everything will depend on the depth of the economic crisis and the quarantine period. Our plan is to open 100 stores. We have a different cycle [than other retailers], 90% of the stores that we planned to open this year were purchased in 2019 and are in different state of preparation of documents, repair, or construction,” he said during the retail company anti-crisis management online webinar broadcasted on Tuesday, April 14.
According to Markov, 90% of ATB’s retail space is owned by the company, part of the vacant space is rented by the retailer, thus, when quarantine was introduced, the company negotiated with the landlords and its tenants about the rental benefits.
“We have 10% of the stores for rent and almost 100,000 square meters of vacant space that we lease. Thus, we operate responding to the current situation, without waiting for any decisions from Ukrainian Chamber of Commerce and Industry or laws, we negotiated with everyone and tried to make compromises,” he said.
Markov also said that one of the main challenges when quarantine was introduced was to cope with large fluctuations and falling in demand of buyers.
“We have seen catastrophic amplitude of demand and supply day by day, from 50% rise to 20% decline during the last week of March. Therefore, we mainly focused on maintaining the supply chain, stable uninterrupted work of almost 10,000 staff, which provides for the movement of trade, the availability of goods and imports,” the CEO of ATB Corporation said.
ATB Corporation is a group of companies involved in retail trade, production and sale of food.
RUSH LLC (Dnipro), which manages of about 1,000 Eva perfume and cosmetics stores chain in Ukraine, increased online sales 7.8 times during quarantine in March 2020 compared to the same period in 2019, the company’s press service said on Tuesday, April 7. “We were prepared for the demands of the times, as before the crisis, we actively developed online sales through the Eva.ua online store. The numbers indicated that we are moving in the right direction. This is also confirmed by our current statistics. In March 2020, compared to March 2019, traffic grew by 305%, and sales grew by 680%,” the company said in the statement, citing Director of the electronic commerce department Olena Annenko.
Sales in March compared to February increased by 40%, traffic grew by 25%.
Thus, at the end of March, compared to February, sales of household goods increased 4.4 times, goods for child care almost four times, goods for personal care three times, household chemicals increased by 30.8%.
In addition to the current targeted delivery, the company intends to resume the delivery to pick-up and drop-off points in offline stores of the chain, which has been suspended since the beginning of quarantine.
RUSH LLC was founded in 2002. It has 40 own brands, which are represented by household goods, perfumes, cosmetics, jewelry, personal hygiene products, accessories, underwear and children’s goods.
The charter capital of LLC RUSH is UAH 10 million.
DC Ukraine LLC, which manages a drogerie store chain in Ukraine, has said that their stores were illegally closed over quarantine under a decision of local authorities.
According to the press service, in some regions local authorities are trying to close the network stores during quarantine. At the same time, the main range of goods at Watsons stores consists of essential goods, disinfectants, hygiene products and household goods.
“Guided by the appeal of the President of Ukraine to the ministries, heads of regional administrations, local self-government, heads of enterprises on ensuring the smooth operation of grocery stores, household goods stores, gas stations, pharmacies, banking institutions, insurance companies, a resolution of the Cabinet of Ministers of Ukraine, and also taking into account WHO recommendations and the practice of others countries, Watsons continues to work, adhering to the requirements of hygiene standards,” the company said in the press release.
According to the company, the closure of stores selling essential goods is a violation of the rights of people in need of hygiene and disinfection during a pandemic.
“Given all of the above arguments, we emphasize once again the need to continue the work of the drogerie segment. The goal of the Watsons network is to ensure uninterrupted and safe access of the population to the products necessary for maintaining the vital activity,” the company said.
Watsons is the largest chain of beauty and health products stores in Ukraine.
