Russian Mere picks spot for first store in Hungary - paper
The Russian retail chain Mere, known as 'Svetofor' in Russia, has become famed not just at home but in various European countries for its low prices and simple, straightforward business policy. Mere is expected to open its first store in Hungary in the second half of the year.
The company, which is famous for its no frills, Spartan discounting model, looks like it will not skimp on employee salaries: they put out a job offer of HUF 500,000 net salary back in April.
The chain vows to increase competition in the discount store market by offering products up to 20% cheaper than competitors, according to the announcement.
Russian Mere's expansion in Hungary is in line with the interest in the discount chain in Europe and Western Europe. The business model, with its emphasis on efficiency and cost minimisation, could be attractive to countries where customers are increasingly looking for low prices without sacrificing quality.
The chain 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.
Mere has no warehouses, so suppliers unload products directly into the shops, hence the stores 'resemble warehouses, rather than traditional Western outlets, and employee numbers are kept to a minimum.
In 2021, they aimed to expand into Western Europe, yet encountered obstacles; the Russian invasion of Ukraine thwarted their plans, and after 24 February 2022 they opened only two stores in Belgium, operating under the name My Price.
In 2023, they announced they would like to focus on Eastern Europe. They opened stores in the Baltic states, Poland and Romania, and coming to Hungary was a natural next step. They plan to open 200 shops and reach EUR 700 million turnover. First, they want to make their stand in Budapest and the suburbs.
Cover photo: Getty Images
