Russian grocer Dixy to sell more own brands to lure shoppers

MOSCOW, March 20 Wed Mar 20, 2013 10:33am EDT

MOSCOW, March 20 (Reuters) - Russian grocery retailer Dixy said on Wednesday it would devote greater shelf space to cheaper own-branded products to attract more shoppers to its stores.

The country's food retail chains have expanded rapidly over the past few years and are now facing increased competition for consumers who often have a choice between three or four supermarkets in a single street in bigger cities.

Own-branded products tend to have less impact on retailers' margins as they are unmarketed and sold by their producers at hefty discounts for higher-volume deals.

Dixy chief executive officer Ilya Yakubson said he expected the share of such products to rise to 15 percent of sales in 2015 from 10 percent by the end of this year.

Dixy became Russia's No.3 grocery chain by sales behind X5 and Magnit in 2011 when it bought rival Victoria.

It has previously said it plans to add 350-400 stores this year and increase sales by 25-28 percent from 147 billion roubles ($4.8 billion) in 2012.

($1 = 30.9092 Russian roubles) (Reporting by Maria Kiselyova; Editing by John Stonestreet)

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