Russia-germany: economic expansion in the opposite direction

Russia-Germany: economic expansion in the opposite direction

Symbol image: CC0

The Russian Torgservis chain wants to roll up the German discount market

Since the early 1990s, German discount chains such as Aldi and Lidl have been expanding into Central and Eastern Europe. Now a Russian chain wants to do business on the German market and participate in "over a hundred locations" to open stores in Berlin, Brandenburg, Saxony, Saxony-Anhalt, Thuringia and Mecklenburg-Western Pomerania: Torgservis.

Up to now, Torgservis has been active in Russia as well as in other former Soviet republics, Eastern Europe and China. The 800 or so Svetofor, Mayak and Mere supermarkets there sell mainly private labels. These goods are not put on shelves, but on pallets, so they can be sold more cheaply. When asked by Telepolis, TS Markt GmbH, which was founded for the expansion, does not yet want to say whether this will also be the case in German stores.

In the past, German chains such as Aldi and Norma also often offered goods on pallets; today, these are more frequently conceded, which, according to a Handelsblatt report, significantly increases the costs. The photo shown on the TS Markt website shows refrigerated shelves that have been set up. However, this is a symbolic image that does not originate from the company itself (cf. Boom in online grocery trade is a long time coming).

20 percent cheaper?

The company does not intend to release any information until the end of January, when the first branch opens in Leipzig, Saxony, under the name already used in Romania "Mere" should run. According to a spokeswoman for the company, reports that the name had to be changed due to legal claims by Mera Tiernahrung GmbH are false. According to the Lebensmittelzeitung, the name of the store had previously been "Centwelt" against which, however, the household goods manufacturer "Centi" with its "Centiwelt" legal claims asserted.

What is known so far about what is expected to be the first store in Leipzig is that it is about 1,000 square meters in size, is located in the Portitz shopping center, and previously housed an Aldi store. The equipment could come from other supermarkets, because the TS Markt GmbH auber after suppliers, real estate and personnel is also looking for appropriate items. The prices it offers for, "underpin" according to the Morgenpost "the claim to operate at particularly low cost". Reports that the goods "by a fifth more favorable" offers than other German Discounter the enterprise liked to comment however just as little as it wants to answer the question whether customers can check that by Internet price data before a purchase.

Second Prize Procurement Costs

In addition to the actual purchase price, goods also have a second price: the procurement costs, which depend on how much time is required for their purchase and how expensive this time is in terms of hourly wages for the respective purchaser. These procurement costs are influenced not only by the density of the store network, but also by the length of the queues at the checkouts. Here, there are not only staff-related differences between individual stores, but also between chains. The more a chain works with discount systems and the more bureaucratically cancellation processes are arranged, the more waiting time one must calculate there as a rule.

Food delivery to the home is only a niche market so far. This is also because the surcharge for this is relatively high and customers have to accept extended time windows in order to receive the goods (cf. Online grocery: expensive delivery models hinder success). Also "smart tower locksmiths", The "online delivery service", which gives the Edeka delivery man access to the cow cupboard, is not everyone’s cup of tea (cf. Online delivery service brings groceries right into the cow cupboard).

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