Is the opening of Russian chain store Mere in Hungary not so certain after all?
Russian discount retailer Mere has outlined bold plans to enter Hungary’s retail market, aiming to open 200 stores within three years and rival top chains like Lidl. However, repeated delays, regulatory hurdles, and a lack of visible progress have cast doubt on Mere’s opening in Hungary.
Mere’s ambitious plans in Hungary
As VG reports, last April, reports emerged in the Hungarian press that the Russian-backed discount retailer Mere was planning to expand into Hungary. Based on an email sent in February to potential business partners, the Russian chain store outlined ambitious plans to open 20 stores in Budapest and its suburbs by mid-2025, aiming for 200 stores nationwide within three years, with a projected turnover of EUR 700 million.
Such figures would position the Russian chain among Hungary’s top 10 retail chains, comparable to Lidl, which took 15 years to achieve similar results. However, neither the Hungarian government nor the local market was aware of these plans, sparking scepticism. Insider sources later confirmed Mere’s intentions, albeit on a smaller scale, with plans for 15 stores, starting in Budapest, Vác, and Szeged, subject to regulatory approval.
Regulatory hurdles?
Last spring, Mere allegedly began preparing the extensive documentation required to comply with Hungary’s “plaza ban,” which mandates special approval for commercial properties over 400 square metres. The Hajdú-Bihar County Government Office, responsible for granting exemptions, was anticipated to make a decision on the Russian chain’s plans by summer 2024. However, no progress was made by year-end. In a statement, the office confirmed that TS Retail Ltd, Mere’s Hungarian subsidiary, had not submitted any permit applications. This raised questions about the feasibility of the Russian discount chain’s promised expansion into Hungary.
Uncertainty grows
TS Retail Ltd, founded in early 2023, reported no sales and a tax loss of HUF 10 million (EUR 24,167) that year. Owned by Serbia-based Hung Trade DOO Beograd, whose proprietors are linked to Mere in Russia, the subsidiary was expected to manage the chain’s Hungarian operations. Despite job advertisements for the new stores, no construction permits have been filed. With no stores opened by 2024, the chain’s ambitious plans for a significant presence in Hungary appear to be on indefinite hold.
Will the Russian chain ever open stores in Hungary?
The Russian chain’s entry into Hungary remains uncertain after repeated delays, missing four launch dates, the most recent in December 2024. Originally planned before the pandemic, the project was revived in late 2023 but has yet to materialise, casting doubt on the seriousness of the retailer’s intentions. If Mere does open, it promises to introduce a unique retail model. The Russian chain is planning to cater to Hungary’s price-sensitive consumers.
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