Euronics and Elektronika to push alliance further

Euronics and Elektronika to push alliance further
Dutch electronics buying group, Euronics, is to continue its Russian expansion with retailer Elektronika, which had been put on hold because of the economic crisis.

Sergei Kuznetsov, Chairman of the Board of Directors of the Electronica retail Group, said all Electronika stores will be re-branded in Euronics stores at the end of this year.

“In the middle of July, Euronics will open a new outlet in the Magnit shopping centre in the city of Vyksa. Another Euronics anchor store will be opened in the new Nebo shopping centre owned by Eletronika Retail Group,with a shop floor area of 5.000 square metres and over 30.000 SKUs. The expansion plan includes re-branding of 10 Elektronika stores and opening of five new stores by the end of 2011, investing $200.000 to $500.000 in each of the stores, depending on size.”

Kuznetsov added that re-branding will help Euronics brand expansion plans and give Elektronika Retailer Group a reliable partner and supplier

“The re-branded Elektronika stores will maintain their independence and control over the business but will benefit from better terms with their suppliers and strategy support.”

Euronics is a second largest European electronic retailer after Media Markt Saturn Group. Euronics Union partners and distributors receive Group support and follow Group standards of procurement and volume of sales.  The first Euronics retail store was opened in Ekaterinburg in 2008. Kirill Novikov, president of Expert –Retail said plans to open 80 Euronics stores were halted by the crisis

 “Our expansion plans together with Euronics were thwarted by the crisis. It was impossible to find a partner with retail property ready to invest.”

Russian Retail electronics market has successfully rebounded after the crisis with market leaders concentrating on regional expansion. Dmitry Pomogaev, PR Director for rival retailer Eldorado, says Eldorado is pushing a greater regional presence with an enhanced branding profile.

“In 2011 Eldorado will open around 40-50 new stores in different regions of Russia investing more than 2.5 billion roubles. During this year Eldorado will introduce new store look and brand image worked out together with Fitch Agency under international standards. The company will completely re-brand the whole retail chain over the next three years.”  

Currently, Eldorado operates more than 330 retail stores in Russia with franchising chain including 320 stores around Russia.