Familia, a Russia-based discount clothing retailer, and O’Key Group, a major grocery retailer in the country, announced a strategic partnership in which Familia will open stores in two O’Key hypermarkets, one each in Yekaterinburg and Tyumen, in the second half of 2017. The agreement includes joint marketing campaigns and other activities. Moreover, the partnership is planned to be extended to more O’Key stores in other locations in Russia starting next year.
The project is part of O’Key’s ongoing strategy to increase efficiency through a “compact hypermarket” format. O’Key CEO Miodrag Borojevic said the agreement with Familia is the beginning of a long-term strategic partnership that will boost the efficiency of the O’Key hypermarkets chain by attracting additional customer traffic and optimizing the retail space. According to Familia CEO Konstantin Nadezhdin, the partnership with the federal grocery network will allow his chain also to gain additional traffic and further strengthen its position as the leading off-price retailer on the Russian market.
As of 10 July, O’Key Group operated 109 stores across Russia, including 72 hypermarkets and 37 supermarkets under its eponymous brand, as well as 55 Da! Discounters.
Familia, in turn, has 169 stores in 64 cities throughout Russia. By the end of 2017, the company plans to grow its chain to 195-200 branches, which means it could double the number of stores it had in 2014 (100 units). The average size of a Familia store is 1,300 m2.
More than 2,700 brands from 40 countries partner with Familia. The company helps sell goods manufactured or imported in excess, as well as goods that come in an incomplete range of sizes, are out-of-season, out-of-fashion or not saleable as planned, according to its website.