The Ukrainian dollar-store retailer Aurora Multimarket plans the large-scale expansion in Ukraine and overseas.
About this informed Retail & Development Advisor (RDA), Aurora network’s broker involved in picking the best locations for retail shops. “First, we are dedicated to open Aurora Multimarket shops in regional shopping centers ready to add a new format to their tenant pool. We negotiate with regional TECs to unleash the network’s potential of an extra mini-anchor. Besides, we participate in updates of the shops’ current format, their development and implementation in cooperation with colleagues from retailer’s team. We've already seen developers’ substantive interest in attracting such a tenant. Aurora network’s additional advantage is that it operates using cash registers with fiscal drive that is risk-free for lessors,” Oleg Klopov, CEO in RDA, comments.
According to his words, the dollar-store format is a promising trend. It will be developing in Ukraine for the next 5-7 years, creating the synergy of customer flows to shopping centers. These shops successfully work in the niche of unorganized retail and consumer goods sales. Tenant mix will be increased in dollar-store shopping centers, creating a synergistic effect in outlet area and attracting visitors to neighboring locations.
“A low price and a wide range lead to such stores in the new drogerie category. Such networks as Cadium Group Holding, Kopiyochka, One Price, Nasha Rukavychka, Chervony Market, and others are among the most active players in this segment. However, Aurora Multimarket is the industry-leading network in this category, presenting over 800 shops across the country. The company plans to open 300 more stores in Ukraine this year and initiate foreign expansion by opening the first outlets in Moldova,” Klopov says.
According to a project manager in RDA, a Ukrainian dollar store market is in development stage with prospects to accept 2,000-2,500 similar outlets. However, the lack of locations and high rental rates are main deterrents to the segment’s development in Kyiv region and metropolises. Overpriced rent doesn’t allow supporting dollar-store stores’ profitability since they feature the minimum mark-up.
Let’s recollect that it has been recently known that the Horizon Capital investment company becomes another Aurora network’s shareholder. At the time, Lev Zhydenko, one of the retailer’s co-founders, stated that a new investor would allow the company to accelerate its expansion in Ukraine, Central, and Eastern Europe.
Contact Oleg Klopov, a project manager in RDA, to find locations for your retail chain: email@example.com, 0977704190.