OREANDA-NEWS. On 14 January 2009 Saint-Petersburg based hypermarket retailer Lenta announced that 2008 sales grew by an excellent 54% compared to 2007. Net retail sales for the year ended December 31, 2008 were RR 50.8bn, compared to RR 32.9bn in the previous year. In USD terms, retail sales were USD 2.04bn.

In the words of Chairman of the Board of Directors, Stephen Ogden: ‘’This is a terrific performance by the Lenta team. Shoppers have realised that Lenta offers a wide range of quality goods at excellent prices. The Russian consumer will seek best value during these times of global economic crisis. This works to Lenta’s advantage.’’

Lenta, which has 34 hypermarkets throughout Russia, is now the 5th largest food retailer in the country. The company will open 3 new hypermarkets in 2009, and will focus its efforts upon providing the lowest prices to customers.

Says CEO & General Director Alexey Bobrov: ‘’Because of our large size, Lenta has very strong purchasing power. This means we get the best prices from suppliers and pass the savings on to our customers. Our shoppers demand good value during these difficult times.’’

December was a record month for Lenta, with sales growing 23% compared to December 2007. Like for like sales were 10% higher in 2008 than in 2007 (a measurement that excludes new stores, and compares the sales of stores existing throughout both years).

Ogden was particularly pleased by the performance of some of the regional stores: ‘’Lenta only expanded into the Russian regions in late 2006. However, sales at Lenta stores in Astrakhan, Volgograd, Nizhny Novgorod, Novosibirsk, Barnaul, Omsk and Tyumen were often higher than sales in some of our Saint Petersburg stores. Our retention rate of customers is excellent. When shoppers discover the low prices and high service levels at Lenta, they usually become loyal customers.’’

Ogden admits that 2009 will be a challenging year for the sector in general, but believes Lenta is well placed to gain market share from other retailers.

‘’Lenta did not borrow excessively in recent years, and is therefore in a good financial position compared to many rival retailers. When economic conditions improve, Lenta will continue its rapid expansion into the Russian regions.’’