OREANDA-NEWS. On 06 July 2009 was announced, that by the end of June, a year has passed since the time of opening of Lenta trade stores in Krasnodar (the shop was opened on June 28, 2008), Ryazan (opened on June 26, 2008), Naberezhnye Chelny (opening took place on June 30, 2008). Also one year ago, on June 29, the fourth Lenta store was opened in Novosibirsk. The results of this year of work were summarized

Lenta’s share in the market of retail trade of these cities is steadily growing, and today this parameter makes*:

• in Novosibirsk (4 shops) – 23 %;

• in Krasnodar (2 shops) – 10 %;

• in Naberezhnye Chelny (1) – 9 %;

• in Ryazan (1) – 6 %.

At the same time, in each of the above cities "Lenta" operates in active competitive environment: in Novosibirsk, Krasnodar and Ryazan shops of the largest federal and foreign retail systems have been working for a long time, in Naberezhnye Chelny there are very strong local players.

Lenta has managed to achieve the appreciable share in the market in all the regions of presence due to its basic competitive advantages: low level of prices along with good service quality. According to the price monitoring data for June, 2009, conducted by Mix Research and Mir Prodovolstviya companies upon the network’s order, Lenta’s prices level is lower than those of its nearest competitor:

• in Novosibirsk -for 7 %;

• in Krasnodar -for 14 %;

• in Naberezhnye Chelny -for 18 %;

• in Ryazan -for 11 %.

Customer satisfaction with prices level in "Lenta" in these cities makes on average 62 %*

At the same time, customer satisfaction with the level of service in "Lenta" in cities is also high*:

• in Novosibirsk - 75 %;

• in Krasnodar - 68 % ;

• in Naberezhnye Chelny - 79 %;

• in Ryazan - 78 %.

As the result, notwithstanding the general decrease in the retail trade turnover parameter in this country, average bill in "Lenta", in the period from July, 2008 - May, 2009, including the above-mentioned, cities has grown **:

• in Novosibirsk – for 7 %;

• in Krasnodar - for 10 %;

• in Naberezhnye Chelny – for 15 %;

• in Ryazan – for 14 %.

In May all regional stores of the network (currently they are 22 shops in 16 cities) have generated more than 45 % of the network’s turnover. The greatest contribution to the turnover (more than 9 %) has been made by Novosibirsk, the second region by number of Lenta shops (currently there are 4 of the network’s hypermarkets in this city). The share of Novosibirsk, Krasnodar, Ryazan and Naberezhnye Chelny in the network’s turnover in May has made almost 13 % **.

During its work in the regions "Lenta" promoted the development of local manufacturers. Currently their share in the network amounts to **:

• in Novosibirsk – appr. 30 %;

• in Krasnodar - appr. 25 %.

Among Lenta suppliers in each region are several dozens of local companies:

• in Novosibirsk – about 70;

• in Krasnodar - more than fifty;

• in Naberezhnye Chelny – more than 30;

• in Ryazan – about 30.

The network will be further developing cooperation with local and regional manufacturers.

* according to the data of telephone interrogations conducted by an independent research company Work Line in March - May, 2009

** the company’s internal data

Among the suppliers of "Lenta" are:

• iin Novosibirsk – Limited Liability Company "The Siberian grocery Company", Limited Liability Company "First Cereal Company", Limited Liability Company "Karachinsky Istochnik", Joint Stock Company "Novosibirsk Poultry Farm", and others;

• iin Krasnodar - Joint Stock Company " Wimm -Bill-Dann " (Timachevsky Dairy Plant), Tikhoretsky Meat Plant (sausages, cooled meat), Оptimа (vodka, liqueurs of "Fortuna" brand), Fanagoria (wines), Kuban-Vino (wines and champagne "365 days");

• in Naberezhnye Chelny – Chelny Broiler, Chelny Holod, Alabuga Sote, RusProd, Chelnykhleb, Tatspirtprom, Kazan Bakery №3, Vamin Tatarstan (dairy products), Tatspirtprom, Agricultural Plant Maisky, Аlisа (mineral water);

• in Ryazan – Trade Yard of Russian brewing company, Ryazankhleb, Agricultural and Dairy Plant Ryazansky, Kortlav, Okskaya Poultry Farm, Ryazan Tea Company, Sasovsky Dairy Plant.

Thanks to cooperation with "Lenta", local suppliers are expanding their sales markets:

• in Novosibirsk: manufacturers Limited Liability Company "The Siberian grocery Company", (meat products), Joint Stock Company "Novosibirsk meat-packing plant", Limited Liability Company "Poultry Farm Inskaya", Joint-Stock Company "Sibket To" (juices), Limited Liability Company "Chistaya Voda" (Pure Water Company) are supplying to all the Siberian and Ural Lenta shops (+3 hypermarkets: 2 in Omsk and 1 in Barnaul);

• in Krasnodar - Joint Stock Company "M.Kholodtsov", Joint Stock Company "Sochi meat plant", Joint-Stock Company " Firma Kaloriya", Joint-Stock Company "Tikhoretsky" Meat Plant " have entered the new quality level – they have become regional suppliers;

• in Naberezhnye Chelny – "Vamin Tatarstan" (production of cheeses) plans to be supplying to all cities of Lenta’s presence in Central Federal district, Kazan Bakery №2 supplies to Nizhni Novgorod, Tolyatti, Ryazan (confectionery products), Chistopolsky Bakery plans to be supplying to Tolyatti, also Chelny Holod supplies ice-cream to Lenta shops in Tolyatti;

• In Ryazan - Ryazan Tea Company carries out supplies to all cities of Central Federal District where "Lenta" works.

Among the suppliers there are also manufacturers of the goods under private brands of Lenta network:

In Novosibirsk – Limited Liability Company FSP Incorporated Bakeries (bread "365"), Limited Liability Company "Sibinvestprom-3" (toilet paper, napkins "365"), Berdsk, Limited Liability Company "Vikon-N" (coal "365"), Limited Liability Company " Pervaya Krupyanaya Kompaniya " (cereals "365")

In Krasnodar region - Limited Liability Company "Kuban-Vino" (makes champagne "365"), Limited Liability Company "Interagrosystemy" (juices "365"), Belorechensk, Joint-Stock Company "Poltava Canned Food" (canned vegetables "365")

In Ryazan - Joint Stock Company Ryazankhleb (bread "365").