Here’s where the first Russian discount store Mere is opening in Hungary, potentially cheaper than its competitors

The Russian discount chain Mere will soon open its first store in Hungary. According to the latest reports, the exact location of this first store has been confirmed.

On 1 April, news broke that Mere was planning to enter the local market with detailed investment plans, as we previously reported. The ambitious goal was to open twenty stores in Budapest within a year and expand to 200 stores within three years. These targets seemed optimistic, considering that it took Lidl around 15 years to reach a similar scale in Hungary. Mere’s plans also raised doubts as the company had not previously engaged with government or industry stakeholders.

Now the Russian chain is preparing to open its first store, as confirmed by Újpesti Szemle, which reported that the store will open in Újpest, specifically in Káposztásmegyer.

According to their information, the new store will be established on the site of a recently closed Spar supermarket. This site has been vacant for some time, so the opening of the new shop will not only benefit shoppers but also the local community by creating new jobs and contributing to the area’s economic development. Mere is expected to open in the second half of the year and hopes to quickly become a popular shopping destination for locals.

Initial reports indicate that they are also renting properties in Vác and Szeged, writes Világgazdaság. If everything proceeds according to schedule without further delays, these stores could open by the end of 2024.

Several Mere stores set to open in Hungary

The discount chain in Serbia. Photo: Depositphotos.com

The chain has become known in Russia and many other European countries for its extremely low prices and simple business model. However, the success of its expansion in Hungary remains uncertain. For now, Mere plans to set up a total of 15 stores in Hungary in three phases.

Moreover, Mere is basing its success on how these stores are received by domestic customers. Therefore, there is no fixed timeline for achieving their business goals. Initially, they will operate in Budapest and its surrounding areas, followed by larger cities and eventually smaller towns.

Világgazdaság also reports that their source, who is familiar with Mere’s strategy in Hungary, pointed out that the long-term goal is to create a network of up to 100 Mere stores over the next 5-10 years.

The chain will reportedly introduce a new retail model in Hungary, distinct from Lidl or Aldi. The stores will be less convenient, primarily accessible by car, but offer prices up to 30% lower by maintaining a slim 15% profit margin compared to the usual 45-60% in retail.

Before the COVID-19 pandemic, which delayed the initiative, the Russian chain’s entry into Hungary had already been planned. The project was revived in the second half of 2023. The company currently employs around 20 people responsible for opening stores, administration, and procurement.

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