The Belarusian chain of stores for home and household goods, as well as food products at low prices, “ Three Prices ,” with more than 300 outlets, is preparing to open its first store in Russia. The opening will take place this summer in the city of Vladimir, which will be the first step in the company’s large-scale expansion into the Russian market.
As the founder of the network, Vitaly Sobolevsky , said, “We set ourselves the goal of achieving a turnover of $1 billion in the Russian market and becoming the No. 2 player in the segment of fixed/low price retail chains.”
In this business, the low check and low cost of goods, as well as the availability of stores, makes this business model sustainable in competition with marketplaces. Online retailers, who are the main competitors, incur additional costs for the development of delivery services and pickup point networks.
The Play Hard company, which manages the Three Prices network, reported that the decision to enter the Russian market was not spontaneous. Research was conducted that helped determine the most promising regions and cities for opening stores.
As a result, the city of Vladimir was chosen as the starting city due to its favorable geographical location and the presence of developed infrastructure. Such a location, according to company experts, is a good basis for launching in a new market.
The Three Prices network understands that competition on the Russian market in this segment is high, but this is both a challenge and an opportunity for growth. This year it is planned to open several more stores in different cities of Russia.
According to recent research , the most successful retailers today are those operating in low-price or fixed-price territory. So, at the end of 2023, Play Hard showed the best result in terms of gross profit compared to its competitors. According to annual reports for 2023, the Three Prices network had a gross profit of 37%, while its closest competitor, the FIX Price network, had a gross profit of 34.8%.
An adapted assortment matrix will be developed for the Russian market with an emphasis on Russian manufacturers. In general, most of the goods on the shelves of the chain stores are of Belarusian, Russian and Chinese origin. The main suppliers are also from these countries. Most of the products are supplied by the network’s parent company, PlayHard.
Thanks to direct contracts with manufacturers and large volumes of purchases, Three Prices is able to offer prices lower than competitors and marketplace sellers, which provides a competitive advantage in the new market.
