“The seventh continent” will carry out reform network

In the optimization

That the network of supermarkets “the Seventh continent” plans to replace the CEO, said a source in the market and confirmed the company owner Alexander Zanadvorov. According to Zanadvorov, today the development of the retail network will be engaged Anatoly Podlesov, who until recently led the network Spar in the Nizhniy Novgorod (under the management of Spar Middle Volga 180 shops, a part of the holding “Sweet life” albert Gusev). Alexander Ageenkov, head of “the Seventh continent” in 2010, will remain with the company in the status of a member of the Board of Directors.

Alexander Ageenkov and Anatoly Podlesov

Anatoly Podlesov working in the company Spar Middle Volga since 2000. In 2001-2003 he held the position of Director, included in the network of the Eurospar supermarket, and in 2003 became Executive Director of the network.

Alexander Ageenkov in 1999-2003 he was the first Deputy Director of Federal service of tax police of the Russian Federation. Then Ageenkov was Vice-President for internal control of CJSC “Polyus”, “daughter” gold mining company “the pole Gold”. In 2010, Alexander Ageenkov came in “the Seventh continent” as the representative of Bank MFK Mikhail Prokhorov, one of the largest creditors of Alexander Zanadvorov.

According to Alexander Zanadvorov, the transition Anatoly Podlesovo in “the Seventh continent” — is part of a plan to reform the network, which will help him and former employer Podlesovo. September “the Seventh continent” integrates logistics with the “Sweet life.” Albert Gusev, who will also join the Board of Directors of the Metropolitan retailer, confirmed information about the upcoming merger. However, as insisted by the interlocutors , speaking about the creation of a joint venture is not.

At the moment, “the Seventh continent” there are two distribution center (DC) in Moscow and the Moscow region, which is about 10% of the turnover, the rest of the range gets into the network directly from suppliers, says Zanadvorov. “The Sweet life” the main RTS is located in Dzerzhinsk, Nizhny Novgorod region, for clients in the Moscow region, the company uses RTS in Podolsk. It is planned that the unification of logistics, “the Seventh continent” and “the Sweet life” will allow you to centralize in one year to 50% of all deliveries in the Metropolitan network, say the partners. “This scheme is beneficial to both companies, we expect to reduce the purchase price for Spar and “the Seventh continent” due to the growth in the volume of purchased goods, — explains Alexander Zanadvorov. — In addition, we will save on logistics costs”.

Albert Gusev said that the cooperation with “the Seventh continent” it is strategically important for the company “Sweet life”, as it gives a good opportunity to gain a foothold in the capital region and to improve purchasing conditions for all nets with which the company operates, including to Spar. The task of the new Manager to improve the efficiency of job shops and to develop new marketing strategy, says Zanadvorov. He, in particular, will complete the optimization process: the company plans to reduce the network to 156 stores at the beginning of 2015 to 120 stores by the end of 2016 (106 of them in Moscow), at the expense of inefficient points under the closure will fall part of a regional hypermarkets and supermarkets, all in rented premises. According to Zanadvorov, reforms are necessary in order to increase the efficiency of operations on the areas owned by his company MKAPITAL” (belonging to “MKAPITAL” squares are shops “the Seventh continent”). Also to a large extent the need for reform is dictated by the increasing competition in the grocery retail and adoption of amendments to the Federal law on trade in June of this year. According to these amendments, one of the co-authors of which were made by the Deputy of the state Duma Irina Yarovaya, there are limits on additional payments to networks of providers, reducing the delay in payment of the delivered goods, the increase in penalties for violation of the Russian legislation. According to the authors of the bill, such measures are aimed at improving the position of producers.

“Most likely, the network “the Seventh continent” decided that these new conditions it is not very clear how to work directly with manufacturers — said the Chairman of the Association of retail companies Ilya Lomakin-Rumyantsev. — Apparently, the “Sweet life” as a distributor will provide “the Seventh continent” a large part of the goods, and such cooperation will be more effective than the work on contracts with the manufacturers.”

To reduce costs

According to the Manager of external communications, Heineken in Russia Anna Markina, the use of retailers and distribution centers is much more efficient from the point of view of expenses on the organization of the supply chain, rather than direct delivery from the manufacturer to the retail network. On June 30, 2016 under the control of one of the largest grocery retailers, X5 Retail Group was 35 distribution centers, on average, about 86% of the goods are supplied to stores through its own logistics network, says a company representative.

Many small and medium-sized companies have their own warehouses, therefore, it is beneficial to buy products in large volumes and deliver them to centralized distribution centers and from there to the food network, explains the head of the National Union of milk producers Andrei Danilenko. “The savings on logistics in this case can be up to 10% of the purchase price,” he says.

Co-owner of the Rostov GK “the Millenium” (the group includes the grocery store “Assorti”) Michael Sichinava said that the company uses the services of the Rostov RTS, but some part of her goods cheaper to buy directly from manufacturers. “Durable goods: cosmetics, household chemicals — it is better to purchase through RTS,” he explains. — When buying in large quantities the savings can amount to approximately 5-7% of the manufacturer’s price. Perishable goods producers supply to our stores directly.”

According to managing Director of an investment company Falcon Advisers of Igor Kovanova, the money saved “the Seventh continent” could be spent on the renovation of the network or to reduce prices in stores. “I doubt that the money saved will be spent to repay his debt to the partners, says Kovanov. — Sure, “the Seventh continent” and so there is money to pay suppliers, just for some reason not doing it.”

In the beginning of the year “the Seventh continent” has streamlined product matrix, with the result that the company ceased the cooperation with several hundreds of suppliers. Some of them addressed in court with claims about collecting debt. According to SPARK, from the beginning of 2016 to JSC “the Seventh continent” was charged with 127 claims amounting to more than 520 million rubles (information updated on August 29). For comparison: in 2015, the company received 64 claims totaling 152,8 mln.

One of the network providers are said to “Kommersant” in July of this year that the massive nature of cases of non-payment on contracts by “the Seventh continent” acquired at the end of 2015. According to one of interlocutors of the edition, the retailer has no money to pay debts. He Zanadvorov claims that the vendors that supply the network get the money from “the Seventh continent” in the terms established by treaties.

“The seventh continent” and “Sweet life”

JSC “the Seventh continent” was founded in 1994. The sole owner of the company is businessman Alexander Zanadvorov. At the end of 2015, “the Seventh continent” consisted of 156 stores. Revenue “Seventh continent” in 2015, amounted to 50.5 billion rubles.

The “Sweet life” was formed in 1992. The founder of the company is albert Gusev. “Sweet life” is a distributor of food products. The company has 53 of its own supermarket and 136 supermarkets Spar, Eurospar, Spar Express, open for franchising. In 2015 “the Sweet life” won the 156-e a place in Forbes rating of 200 largest Russian private companies with revenues of 37.8 billion rubles.