Businessman Oleg Vyshniakov, co-owner of local supermarket chain MegaMarket, plans to open a new chain of stores in Kyiv called Ultramarket, he told Ukrainian magazine Novoe Vremya on April 30.
New supermarkets will replace two MegaMarket stores in Kyiv; Vyshniakov will also open two new stores by the end of the year.
According to Vyshniakov, Ultramarket will have the same prices as MegaMarket, but the design of the new stores and a variety of products will be different. For example, Vyshniakov wants Ultramarket to start selling craft products from small local farms.
Although the Ukrainian retail market is dominated by giants like ATB, Fozzy Group (owns Silpo, Fora and Fozzy), Varus and Novus, experts said that there is still a place for a new chain targeted at people with average and above-average income.
According to Alexey Rashchupkin, managing partner at Ukrainian consultancy Altius Capital, Vyshniakov will probably expand his chain because it is hard to gain profit with only four supermarkets.
As of today, Ukraine’s largest food retailer ATB has 1,152 supermarkets, Fozzy Group has 695 supermarkets, Varus has 95 supermarkets.
It is easier for bigger chains to purchase goods with discounts and sell them for lower prices. For example, the prices in ATB and Varus are notably lower than in MegaMarket.
