Fix Price chain almost doubles revenue in 2013
MOSCOW. July 22 (Interfax) - LLC Best Price, the operator of the Fix Price discount chain, saw revenue almost double in 2013 to 27.4 billion rubles from 14.2 billion rubles in 2012, the SPARK Interfax database shows.
Sales growth for the chain, created in 2007 by Kopeika founders Sergei Lomakin and Artyem Khachatryan, slowed last year compared to previous years when Best Price more than doubled revenue every year.
Costs climbed to 17.4 billion rubles from 9.05 billion in 2012. Gross profit climbed 92.6% to 9.99 billion rubles.
Commercial spending increased to 7.05 billion rubles from 3.68 billion rubles. Operating profit (sales profit) grew to 2.9 billion rubles from 1.5 billion.
Net profit doubled to 2.05 billion rubles from 1.05 billion rubles.
The first Fix Price store opened in December 2007. The chain operates as a one price shop, such as Dollar Tree, 99 cent only, Japan's Daiso and Germany's Euroshop.
There were 1,050 Fix Price stores at the end of 2013. The company plans to expand to 1,450 by the end of 2014 and 1,950 by the end of 2015. The average shop floor space for a store is 200 to 300 square meters and the stores have a range of 2,000 products, 80% of which is made up of non-food goods (housewares, household chemicals, cosmetics and perfumes, hygiene products and clothing).
The company imports goods independently, cutting out surplus costs and keeping prices low, it says on the website. Of the range, 70% of the goods are imports.