Torgservis, The Concept of the Month
A discount retailer with prices 5% to 20% lower than Aldi and Lidl? This is the promise of Russian retailer Torgservis (estimated annual sales of €1.3 billion via 800 Svetofor and Mayak no-frills stores), which stretches across Eastern Europe. Stores sell a range of up to 2,000 products with 70% as food products and 90% from its own private labels. Stores have a no-frills environment, with products displayed on pallets including overstocked items.
The Group’s founder, Mrs Valentina Shnayder, owns more than 60% of the company.
Torgservis is well established in Eastern Russia. Its stores are located in rural conurbations of around 15,000 people, with rents half those of the leading retailers X5, Lenta and Magnit. The Group also started its foreign expansion in Bielorussia, Kazakstan and Azerbaijan and entered Eastern Europe more recently. In late 2018, it made inroads in Romania and Poland, and added Germany in January 2019. In the home market of Aldi and Lidl as the world’s two biggest discounters, the firm has just opened a