Shift in retail: Is Russian Mere pushing others out of Hungary?

In mid-July, the long-standing store of Hungary’s second-largest retail chain, SPAR, will permanently close its doors in a major rural city. Rumours are spreading that the Russian chain Mere might take over the location. However, the city of 70,000 will not be left without a SPAR presence.

Last week, the business publication Világgazdaság reported that Hungary’s first Mere store might open in Budapest’s IV district, possibly in a former SPAR location. Now, a similar scenario is unfolding in Szolnok, the county seat of Jász-Nagykun-Szolnok County.

The discount chain in Serbia. Photo: Depositphotos.com

Details of the closure

The news of the SPAR store closure in Szolnok first appeared on social media and was later confirmed by local media, including Szol24. Despite SPAR’s popularity and expansion in Hungary, the central city store in the Pelikán Shopping Center will close on 14 July at 2 PM.

Even with this closure, Szolnok will still have other SPAR outlets nearby and an Interspar as well, Világgazdaság writes. SPAR Hungary operates 641 units nationwide with over 17,000 employees, making it a significant employer. In 2023, SPAR invested in new store openings and renovations.

Source: spar.hu

Reasons for the closure and employee impact

Világgazdaság contacted SPAR Hungary for details on the closure. SPAR’s Communications Director, Márk Maczelka, explained that annual performance reviews sometimes lead to store closures for cost rationalisation. This year’s review indicated that the SPAR supermarket at 15 Ady Endre Street in Szolnok could not be operated profitably, leading to its closure on 14 July 2024.

Maczelka emphasised appreciation for the staff’s efforts and mentioned that most affected employees were offered positions in other stores. Those unable to accept new roles would receive benefits according to their tenure and the collective agreement.

Potential Mere store opening

The Russian MERE discount chain. Photo: mere.ws

Rumours suggest that the Russian Mere might open a store in the soon-to-be-vacant location in the Pelikán Shopping Center. While the centre’s management neither confirmed nor denied this, they stated that discussions with several interested parties are ongoing. It is confirmed that a new grocery store will eventually occupy the ground floor, but the specific chain remains uncertain. SPAR Hungary did not comment on potential new store openings by other chains.

According to Szol24, in Budapest, the Russian supermarket chain is expanding on the site of the SPAR stores that are closing, and its main attraction is its extremely low price. In addition to being cheap, the Russian supermarket is also special because they don’t put anything on the shelves but they simply offer a selection of pallets and boxes for the customer.

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3 Comments

aqeel says:

12/07/2024 at 08:10

i happy
This Russian "thing" - it will Claim Victims : says:

12/07/2024 at 09:18

Certainly – it WILL not, be a positive, in the competition of “market” share, but result in, the eradication, of what we presently have in the demographic structure – of our Supermarket(s) operation(s) in Hungary.
Demand – as opposed to population numbers, this Russian “thing” – and Hungarians are gullible – in excessive behaviour, to throw there forints into it – support it, that will see AGAIN a ” changing face” – in Supermarket shopping, initially in Budapest, then through – If we ALLOW it – Hungary.
Orban – his Fidesz Government, we know, that the Prime Minister of Hungary – Victor Mihaly. Orban – personally, is on the PAY role of Vladimir Putin – Russia.
It could be assumed – the “distasteful” un-lawful conduct & act’s – the abuse imposed inflicted upon millions of Hungarians by the Fidesz Government of Hungary, them first and citizens a distant second – that PALMS of there Hands – have been generously OILED.
Hungary – we have FACTUALLY – 3 million of our population being 3% of our population, and it rises, living in POVERTY – in an “ageing” society and decreasing population that deaths per year, the trend over 15 years that the Orban – Fidesz Government have been in POWER – have monthly, yearly – outnumbered Babies” being born.
Supermarkets – our Community Markets – inclusive of our LARGE Historical Markets – fresh produce & “other” in Budapest, that have “inter-faced” into there operation Supermarkets, the Russian “thing” will “bite them” and the smaller players, in particular will FALL, and the larger Supermarket operators will have loss of customers – loss on there bottom lines.
Supply & Demand – coupled with an Economy, through the FAILINGS of the Orban – Fidesz Government, that is directional – it’s trend of COLLAPSE.
Nothing is nor will it get CHEAPER in Hungary.
The Russian “thing” – will NOT provide BETTER quality of Food & “other” items of it’s operation.
Orban – the Fidesz Government, this is another example of Hungary, being Sold Out – Sold Off not the ownership’s of the BIG Players in the Supermarkets, knowing they are NOT Hungarian owned and operated, but the smaller players, the citizens – that through this Russian “thing” – we AGAIN placed a distant second, the citizens of Budapest, Hungary.
This “Judus” behaviour on-going of the Orban – Fidesz Government – Wrongful – Criminal.
Larry says:

12/07/2024 at 15:00

Instead of living as Europeans Hungarians can now learn to live like grubby Russians in Orbanistan. You can’t even buy decent palinka in Budapest anymore unless it is some specially marketed product for an astronomical price. I’m sure you can get all the vodka you want at Mere and you can learn to sing in Russian as you drink it to forget your misery.