Fix Price, the Russian discount retailer, has announced its plans to expand into the United Arab Emirates (UAE) and open its first outlets in the Gulf state next year. Dmitry Kirsanov, the company’s CEO, revealed the news, highlighting the potential for growth in high-potential markets.
This expansion comes after the successful establishment of Fix Price stores in various countries, including Russia, Belarus, Kazakhstan, Uzbekistan, Latvia, Georgia, Kyrgyzstan, and Mongolia. Earlier this year, the retailer entered the Mongolian market with the opening of two stores in Ulaanbaatar.
With over 6,000 outlets across its current markets, Fix Price has been continuously expanding internationally. In the second quarter of this year, the company opened its first stores in Armenia under a franchising program. This move was seen as a step towards tapping into new markets and boosting its brand presence.
The foray into UAE is further evidence of Fix Price’s ambition to grow and serve a wider customer base. The company’s expansion plans are backed by its recent success in the financial market. In 2021, Fix Price raised approximately $2 billion through an initial public offering on the London and Moscow stock exchanges.
According to the company’s financial report, Fix Price recorded a 3% year-over-year increase in revenue, reaching 135.7 billion rubles ($1.38 billion) in the first half of this year. The retail revenue witnessed a growth of 2.9%, amounting to 120.1 billion rubles ($1.22 billion) compared to the same period last year. Wholesale revenue also rose by 3.3% year-on-year, totaling 15.6 billion rubles ($158 million).
Fix Price’s success can be attributed to its business model, which focuses on offering a wide range of quality products at consistently low prices. The retailer has become a popular choice for budget-conscious consumers, ensuring steady customer loyalty and attracting new customers in all the markets it operates in.
The entry into the UAE market aims to replicate this success and provide consumers in the Gulf state with affordable and quality products. The retail landscape in the UAE is highly competitive, with major international brands already established. However, Fix Price believes that its unique value proposition can carve out a niche and attract customers looking for cost-effective shopping options.
By expanding into the UAE, Fix Price aims to tap into the country’s strong consumer spending power and growing retail sector. The UAE is known for its vibrant shopping culture, which includes a mix of luxury shopping malls and traditional markets. With the introduction of Fix Price’s discount stores, consumers will have access to a wider range of affordable products, further diversifying the retail landscape.
As Fix Price prepares for its UAE expansion, the company is optimistic about the opportunities it presents. The CEO’s statement reflects the strategic vision of the company to continue expanding its brand presence in markets with significant growth potential. With its experience and success in various international markets, Fix Price is well-positioned to thrive in the competitive retail market of the UAE.
In conclusion, Fix Price, the Russian discount retailer, is set to open its first outlets in the United Arab Emirates next year. This expansion is part of the company’s strategy to tap into high-potential markets and replicate its success in countries such as Mongolia. With a strong financial performance and a proven business model, Fix Price aims to establish its presence in the competitive UAE retail sector and provide consumers with affordable and quality products.
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