Russian Retail Competes With Fast Food Chains

The beauty retailer Zolotoye Yabloko reported a turnover of 204.3 billion rubles. The company is utilizing premium locations to attract customers seeking both shopping and leisure experiences. The company uses large store layouts to encourage consumer movement between cosmetic product aisles. Additionally, the company's online store and application use nightly price parsing to offer competitive pricing against the market. Zolotoe Yabloko is implementing high pricing strategies for cosmetics, which is leading to some previously profitable locations becoming loss-making. The company is reportedly planning to close or remove these problematic locations. First quarter 2020 results indicate pressure from marketplaces on the retailer. Rivgosh has reduced its network by approximately 10%, while Eldobote has suspended active expansion and is not opening new stores. The market gap between the leader and its competitors is expected to increase. The report also noted issues regarding anti-fraud account blocks during large withdrawals and payment problems from state customers. The food service industry is facing difficult times with changing consumer habits, prioritizing delivery and ready-made meals. Retail chains can offer combined meals like a hot dog and cola for approximately 160 rubles, posing a competitive challenge due to their scale and different operational models.