Fix Price plans to expand business in Uzbekistan

The chain sees potential in opening more than 3.8 thousand of its stores in Belarus, Kazakhstan and Uzbekistan.

Considering that at the end of December 2020 the retailer had 143 stores in Belarus, 77 in Kazakhstan and 15 in Uzbekistan, the new plan assumes an increase in the number of outlets in these three countries by almost 12 times.

Expansion of Fix Price to these countries is no coincidence: given the large capacity of local markets, there is practically no competition in the segment of civilized trade, says Vasily Karpunin, head of the information and analytical content department of BCS World of Investments.

For example, the total volume of the retail market in Belarus is estimated at $20.7 billion, the average annual growth rate was 11.5% over the past five years, and there are 41.92 thousand modern stores throughout the republic, the Fix Price memorandum says. In Kazakhstan, these figures are $30.7 billion, 12.5% and 83.5 thousand, respectively.

In Uzbekistan, the turnover of the entire retail market is still small – $14.7 billion, and the number of modern stores does not exceed 46 thousand, but in the republic, the annual growth rate is higher – 19%.

According to Oliver Wyman’s estimates, now only 2% of the retail market in Uzbekistan is accounted for by modern trade formats, in Kazakhstan – 5%, in Belarus – 46%.

In addition, the format of inexpensive goods with fixed prices, in which Fix Price operates, is in great demand in Kazakhstan, Uzbekistan and Belarus, adds Viktor Dima, senior analyst at Aton.

The network plans to start trading its shares on the London Stock Exchange on March 10. Last Monday, the company announced an IPO price range of $8.75-9.75 per Global Depositary Receipt (GDR).

Fix Price will officially announce the exact price of its placement on March 5. The retailer is ready to use part of the funds from the IPO for development, including expansion.