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 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.
Read also:
Russian retail chain Mere to open in Hungary: Locations, timelines, products – Read here
Russian discount chain recruiting in Hungary with dream salaries! – Read here
The profit margin of grocery chains is in the low single digits. Any referral to 45-60% profit margins in retail is misleading. Tesco PLC’s profit margin for trailing 12 months was 1.74%. If Mere’s profit margin is 15% it is a massive multiple of everyone else’s. How do they do it? For one thing I would like to know whether Mere will be subject to the same discriminatory taxation by the Fidesz government as Spar was and it is a Spar store that they have taken over. Tax Spar out and bring the Russians in.
As long as Russia is waging this brutal war Mere stores should not open and should not be supported! The profits will be used for more killing, rape and aggression.