Who We Are
Fix Price Group is the largest variety value retailer in Russia,Variety Value Retail (VVR) channel covers stores that sell general merchandise, such as apparel, automotive supplies, dry goods, toys, hardware, home furnishings, and a selection of groceries usually at discounted prices, sometimes at one or more fixed price points operating under the trademark Fix Price, with almost 5,700 stores and RUB 277.6 billion in revenue for 2022. We provide an affordable and attractive shopping, offering a broad range of essential and unique products at several fixed price points. Currently, there are 5,098 stores in Russia, with another 565 stores in neighbouring countries including Belarus, Kazakhstan, Uzbekistan, Latvia, Georgia, and Kyrgyzstan – all operating under the Fix Price brand.
We are the leader of the Russian VVR market both in terms of store count and sales. According to the retail consultancy INFOLine, Fix Price’s share of the total Russian VVR market in 2022 was estimated at 89.6%.Based on sales including VAT We have delivered continued revenue growth over the past several years supported by strong like-for-like sales performance. Our product offering includes our own private labels as well as third-party branded and non-branded goods, comprising c. 2,000 SKUs across approximately 20 categories, including non-food, food and drogerie (household chemicals, cosmetics and hygiene) products.
Our Concept and Differentiation
The Company operates a completely standardised store portfolio that is well positioned to drive outstanding unit economics. We have built a one-store format by leveraging a consistent and uniform concept across the entire Fix Price store network. This format encompasses average store size, product assortment, pricing policies, product layout, equipment and marketing, and promotional activities. Such approach allows us to ensure our business remains consistent and scalable, all while driving efficiency gains and building brand recognition with customers. Our typical store has an average selling space of c. 215 square metres and is mainly located in convenient and high-traffic sites in high-density areas, as well as in shopping malls and shopping centres, across a variety of urban areas. In addition, we have been successful in operating stores in smaller localities and plan to continue to expand in those settings.
The key pillars that make Fix Price stand out from the competition are our market-leading position based on our unique customer proposition; our stores’ format, which holds significant future growth potential; our consistently strong performance against financial and operational KPIs; and our cutting-edge IT solutions. We also strive to provide an exciting treasure hunt experience for our customers. When delivering our customer proposition, we aim to surprise consumers with new and exciting goods at affordable prices. We believe that we help make our customers’ everyday lives better by offering an enjoyable shopping experience at all Fix Price stores.
Regular customer feedback ensures Fix Price is able to give customers what they want. We aim to deliver a constantly refreshed product range by launching c. 50 new products every week, with approximately 67% of our product assortment updated up to six times per year.
The Fix Price multiple price point architecture covers nine anchor prices:
- RUB 55
- RUB 59
- RUB 79
- RUB 99
- RUB 149
- RUB 199
- RUB 249
- RUB 299
- RUB 349
It allows us to provide an extensive range of products while retaining the appeal of variety value retail
A Format that Supports Significant Future Growth Potential
Over the past few years, we have been scaling our business in a turbulent and rapidly changing environment, responding prudently to external challenges to meet our growth and profitability commitments. Moreover, we have been able to capitalise on the ongoing sea change in Russian consumers’ behaviour towards favouring greater value offerings.
We believe there is further potential to expand our operations in Russia as well as in its neighbouring countries. The total store potential for the Russian variety value retail market is estimated at approximately 15,600 stores (including Fix Price stores already operating), which is nearly 3x higher than the Group’s current store count in Russia.Source: INFOLine Looking outside of Russia, we expect the total store potential to be approximately 3,000 combined for the respective VVR markets in Belarus and Kazakhstan (including Fix Price stores already operating).Source: INFOLine
Consistently Strong Performance against Financial and Operational KPIs
We have consistently been one of the leading publicly traded variety value retailers globally by revenue growth and profitability for several years running.Based on information available in open access about publicly traded US and international dollar stores / value retailers, including Dollar General, Dollar Tree, Five Below, Grocery Outlet, Ollie’s, B&M, Dino, and Dollarama
Fix Price has grown its revenue at a CAGR of 21% (in FY 2022 vs FY 2020), driven by strong like-for-like sales performance and a rapid expansion of store network. Top-line growth has been supported by historically robust 19% plus EBITDA margins.
Cutting-edge IT Solutions and Social Responsibility at the Heart of What We Do
State-of-the-art integrated IT systems provide Fix Price with seamless control over the entire supply chain, resulting in high operational scalability and substantial cost savings. The use of data mining and analysis of consumer preferences gleaned from our loyalty card programme allow us to make smart merchandising, procurement and marketing decisions. We drive standardisation, agile sourcing and tech-enabled automation across all stores to deliver operational excellence.
The Company also views social responsibility as an integral part of our culture. We supply a wide range of essential products across all 80 regions within our footprint in Russia and enable our customers to advance their quality of life by providing equal access to our compelling assortment at the best value. We have established rigorous quality control, risk management and corporate governance procedures.