Ambitious plans: Russian discount chain determined to beat Aldi, Lidl in Hungary
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According to telex.hu, the success story of the Russian Mere began in Siberia, with aspirations not only to conquer Hungary but also Europe. Previously, they expanded into Romania and Great Britain. However, their ambitious plans were temporarily halted by the Russian invasion of Ukraine. Nonetheless, it appears they’ve only paused temporarily. According to a leaked letter, they aspire to start operations in Hungary, a matter we have detailed in THIS article.
Telex reported that the Mere network is owned by Torgservis, with its first store established in 2009 in Krasnoyarsk, known for its WWI POW camp, where Hungarian soldiers were held captive. The company is under the ownership of brothers Sergei and Andrei Schneider, descendants of a German lineage. They don’t give interviews, instead silently constructing their supermarket empire.
Russian discount chain vows to be very affordable
The Russian discount chain, known as ‘Svetofor’ in Russia, boasts approximately 3,000 stores, mainly situated in small Siberian towns. Moreover, they have outlets in Kazakhstan, Belarus and China. Additionally, they’ve entered markets in Lithuania, Romania, Germany, Spain, Belgium and Britain. In Russia, their 2023 revenue totalled EUR 2 billion.
Their market strategy is straightforward: pledging prices 20-30% lower than competitors such as Aldi and Lidl. But how?
According to the manager of their Spanish subsidiary, they refrain from expenditures that would inflate costs. Consequently, there is minimal decoration or shelving, adopting a ‘Spartan’ approach. Furthermore, the absence of a warehouse means suppliers unload products directly into the shops. Naturally, employee numbers are kept to a minimum.
Consequently, Mere stores resemble warehouses rather than contemporary Western outlets. HERE are some additional photos.
Mere (or Svetofor in Russia) is very popular in the poorer regions. When they opened their first shop in Leipzig in 2019, the crowd was massive, and some people didn’t even have the chance to enter. Since customers emptied the local store, they had to close for days to restock their nonexistent shelves. A customer remarked that Mere is akin to Aldi in its early days.
