“Magnet” will halve the number of its own brands

The largest Russian retailer Magnit will review the portfolio of its own brands and will halve them. About this “Vedomosti” said Director of purchasing own brands “Magnet” Anastasia Kudrya on the forum “Own brand”.

Now the network has more than 80 brands, which sells more than 1000 products in most categories. We are talking about dairy products, flour, cereal, soft drinks, confectionery, household goods and other.

“Our strategic figure 40 STM [private brands],” said Kudrya. According to her, the current brands will be “integrated”, in addition, a separate category of stamps will be launched for hypermarkets and cosmetic stores.

“For example, in fish products has own brand of “South Harbor and North Harbor” is appropriate, make use of them both there, so we make one, — said the representative of the retailer, noting that almost all brands will have new design. Magnit expects that the share of own brands in turnover of the company reaches 20%.

As noted by “Vedomosti”, referring to Morgan Stanley, many retailers are now focused on the development of their brands with the cheapest offer. “It’s a great way to attract customers, strengthen their loyalty,” — said the analysts of the Bank. In 2015 Morgan Stanley reduced its recommendation on the receipts of “Magnet”, later explaining that one reason for this decision was the slow response to the fall in purchasing power.

Analysts predict that total sales of goods for promotions and private brands can reach the Russian retailers this year 50%. Plans to optimize the portfolio STM “Vedomosti” reported in “Dixie.”