Russian "Lidl" Aims to Break into Hungarian Market
The Mere supermarket chain, often referred to as the Russian equivalent of Lidl, has announced ambitious plans to establish its presence in Hungary.
According to an email acquired by haszon.hu, the company aims to achieve a turnover of 700 million euros across 200 stores in Hungary within the next three years.
Sent out to potential business partners at the end of February by representatives of the Russian discount chain, the correspondence outlines the company's aggressive expansion strategy, including the opening of 20 stores in Budapest and its agglomeration within the next year.
Haszon.hu recalls that the Russian retail chain was founded in 2009 and has since expanded to about 2,500 stores across 20 countries. Similar to Aldi and Lidl, Mere operates as a so-called hard discount chain, offering products at low prices. The email promises that their prices will be 20% lower than the market average, thanks to direct cooperation with manufacturers, strict cost control, and minimal commercial markup. The stores, typically 1,000 square meters in size, are known for their spartan setup, with products being offered directly from boxes or pallets.
In 2022, due to sanctions related to the Russo-Ukrainian War and resulting supply difficulties, Mere was forced to close its stores in Austria, Belgium, France, Germany, Spain, and the UK. However, they have since attempted to re-enter the Belgian market under the MyPrice brand. According to Lebensmittel Zeitung, a German food industry newsletter, the Russian discount chain has not completely abandoned its European endeavors but is now focusing on Eastern Europe. The region's fragmented retail market and smoother supply chains are seen as favorable conditions for Mere's operations, as reported by haszon.hu.
Sent out to potential business partners at the end of February by representatives of the Russian discount chain, the correspondence outlines the company's aggressive expansion strategy, including the opening of 20 stores in Budapest and its agglomeration within the next year.
Haszon.hu recalls that the Russian retail chain was founded in 2009 and has since expanded to about 2,500 stores across 20 countries. Similar to Aldi and Lidl, Mere operates as a so-called hard discount chain, offering products at low prices. The email promises that their prices will be 20% lower than the market average, thanks to direct cooperation with manufacturers, strict cost control, and minimal commercial markup. The stores, typically 1,000 square meters in size, are known for their spartan setup, with products being offered directly from boxes or pallets.
In 2022, due to sanctions related to the Russo-Ukrainian War and resulting supply difficulties, Mere was forced to close its stores in Austria, Belgium, France, Germany, Spain, and the UK. However, they have since attempted to re-enter the Belgian market under the MyPrice brand. According to Lebensmittel Zeitung, a German food industry newsletter, the Russian discount chain has not completely abandoned its European endeavors but is now focusing on Eastern Europe. The region's fragmented retail market and smoother supply chains are seen as favorable conditions for Mere's operations, as reported by haszon.hu.
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