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STAR is expanding into regions
arminfo
Saturday, May 12, 14:11
The leadership of the STAR trade chain (STAR Divide CJSC) is going
to open 20 stores with an area of 200-400 sq m in 2012. Most of the
stores will be outside Yerevan, Vahan Kerobyan, Chief Executive
Officer of the STAR trade chain, told journalists. He recalled that
there are 30 STAR supermarkets in the country, 28 of them in Yerevan,
1 in Hrazdan and 1 in Bryureghavan.
He said that the pledge of STAR's competitiveness is that the company
is trying to be close to its customers by means of small stores "in
the close vicinity". "We are trying to provide them with convenient
conditions our competitors can't. We give high priority to the
freshness, quality and prices of the goods", Kerobyan said and added
that the interest in STAR is also increased due to the weekly
campaigns.
Kerobyan said that the company carefully treats the process of opening
of the stores outside Yerevan. The process will first be launched in
the populated areas near Yerevan. He said that it is more difficult
to control the stores located far from Yerevan and this requires
significant costs. "It will be easier to open stores in Abovyan or
Echmiadzin, for instance, and, having understood the philosophy of the
work in the regions, to take a step towards to the
remote regions", Kerobyan explained. He added that he is optimistic
about possible activities in Syunik region, as he is well aware of the
good prospects of retail trade in that region.
As regards the problems with promotion in the regions, Kerobyan
mentioned the lack of infrastructure. This is explained by the fact
that most suppliers do not distribute the goods in the regions
properly. "70% of the retail trade of the republic is concentrated in
Yerevan, whereas only 30% of the population live in Yerevan", he said.
He added that the company is going to fill this gap in distribution by
means of its own logistics and cold storage facilities. Thanks to
this, the customers in the regions will be able to buy the same goods
as in Yerevan. The company will also take into account the needs and
wishes of the local population.
Kerobyan did not agree with the opinion that STAR supermarkets create
social problems in the regions by making bankrupt the local small
shops. He said that inefficient enterprises should be closed. "Once we
also were small and inefficient, but we found strengths to improve and
to become attractive," Kerobyan said.
He refuted the reports that during the election period trade in STAR
rose due to the customers who received bribes for their votes.
He said that shadow activity is quite high in retail trade, especially
among small and medium-sized companies. "If you ask big suppliers,
they will tell you how hard it is for them to convince small shops to
buy their goods on an invoice basis," Kerobyan said, noting that STAR
is trying to build long-term "clean" relations with its suppliers with
a view to create an efficient supply chain, offering its consumers as
low prices as possible.
Kerobyan said it is not right to compare STAR with foreign retail
chains. "In Armenia retail chains first emerged some five years ago,
in Europe and America they have existed for already 70 years. We are
trying to catch up with them, but they are far ahead," Kerobyan said,
noting that their key advantage is the quality of their suppliers -
something STAR is trying to improve.
Kerobyan said that STAR's share in Armenia's retail trade is 10-15%,
noting that the official retail trade statistics are not real since
they skip the shadow trade.
Kerobyan said that in each of the past months in 2012 STAR registered
50% growth in turnover.
The owner of STAR Divide is Viest Assets, an offshore company, based
on Virginia Islands and belonging to an Armenian businessman.
From: Baghdasarian
arminfo
Saturday, May 12, 14:11
The leadership of the STAR trade chain (STAR Divide CJSC) is going
to open 20 stores with an area of 200-400 sq m in 2012. Most of the
stores will be outside Yerevan, Vahan Kerobyan, Chief Executive
Officer of the STAR trade chain, told journalists. He recalled that
there are 30 STAR supermarkets in the country, 28 of them in Yerevan,
1 in Hrazdan and 1 in Bryureghavan.
He said that the pledge of STAR's competitiveness is that the company
is trying to be close to its customers by means of small stores "in
the close vicinity". "We are trying to provide them with convenient
conditions our competitors can't. We give high priority to the
freshness, quality and prices of the goods", Kerobyan said and added
that the interest in STAR is also increased due to the weekly
campaigns.
Kerobyan said that the company carefully treats the process of opening
of the stores outside Yerevan. The process will first be launched in
the populated areas near Yerevan. He said that it is more difficult
to control the stores located far from Yerevan and this requires
significant costs. "It will be easier to open stores in Abovyan or
Echmiadzin, for instance, and, having understood the philosophy of the
work in the regions, to take a step towards to the
remote regions", Kerobyan explained. He added that he is optimistic
about possible activities in Syunik region, as he is well aware of the
good prospects of retail trade in that region.
As regards the problems with promotion in the regions, Kerobyan
mentioned the lack of infrastructure. This is explained by the fact
that most suppliers do not distribute the goods in the regions
properly. "70% of the retail trade of the republic is concentrated in
Yerevan, whereas only 30% of the population live in Yerevan", he said.
He added that the company is going to fill this gap in distribution by
means of its own logistics and cold storage facilities. Thanks to
this, the customers in the regions will be able to buy the same goods
as in Yerevan. The company will also take into account the needs and
wishes of the local population.
Kerobyan did not agree with the opinion that STAR supermarkets create
social problems in the regions by making bankrupt the local small
shops. He said that inefficient enterprises should be closed. "Once we
also were small and inefficient, but we found strengths to improve and
to become attractive," Kerobyan said.
He refuted the reports that during the election period trade in STAR
rose due to the customers who received bribes for their votes.
He said that shadow activity is quite high in retail trade, especially
among small and medium-sized companies. "If you ask big suppliers,
they will tell you how hard it is for them to convince small shops to
buy their goods on an invoice basis," Kerobyan said, noting that STAR
is trying to build long-term "clean" relations with its suppliers with
a view to create an efficient supply chain, offering its consumers as
low prices as possible.
Kerobyan said it is not right to compare STAR with foreign retail
chains. "In Armenia retail chains first emerged some five years ago,
in Europe and America they have existed for already 70 years. We are
trying to catch up with them, but they are far ahead," Kerobyan said,
noting that their key advantage is the quality of their suppliers -
something STAR is trying to improve.
Kerobyan said that STAR's share in Armenia's retail trade is 10-15%,
noting that the official retail trade statistics are not real since
they skip the shadow trade.
Kerobyan said that in each of the past months in 2012 STAR registered
50% growth in turnover.
The owner of STAR Divide is Viest Assets, an offshore company, based
on Virginia Islands and belonging to an Armenian businessman.
From: Baghdasarian