The Magnit distribution chain will launch a franchise for the first time

This will be a reverse franchise format; it provides for the transfer of the rights to use the retailer’s brand and business model to the franchisee. There are no additional costs and the partner only invests in building the store.

To open a store, you will need from 2.5 million rubles of investment, the retailer claims that there will be no strict requirements for the size of the premises: the retail area can be from 50 to 1,000 square meters. You can become a franchisee if you are the owner or long-term tenant of retail real estate – this can be done not only by independent entrepreneurs, but also by regional retail chains.

Speaking about the payback period, Magnit notes that it will be about 18 months. It is planned to open about a thousand such stores; they will be completely similar to its own outlets in terms of product offering, pricing and marketing policies, as well as external design.

The Dixie chain already uses a similar format. It started working in this direction a year ago. The X5 Group, which owns the Pyaterochka chain, is following the same direction. The new direction of work will allow Magnit to accelerate the pace of expansion and enter regions where there is no network yet.

We previously wrote that Russian food manufacturers have sent letters to retailers asking them to increase purchase prices by 5-40%. This could happen as early as August-September.