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Serbia: Russia's Fix Price enters

Updated: Apr 14

Discount Variety Retail Chain Fix Price, which specializes in the sale of consumer goods at "fixed" and lower prices, is preparing to enter the Serbian market, the Russian business newspaper Kommersant reported. It is planned that the first stores will be opened by the end of 2025, and Serbia will be the first European country where Fix Price will launch retail.


Fix Price confirmed to Kommersant that it intends to enter the Serbian market, but did not specify the details, only stating that the market conditions and the structure of consumer demand in Serbia correspond to the conditions of their business model. Consumers can stock up on food and drinks, cosmetics, household chemicals, pet food, books, souvenirs, and even shoes and clothing at Fix Price stores.


Unlike Russian retailers Svetofor and Mere, which already operate in Serbia, and which when opening their stores said that "they do not offer shiny tiles and expensive chandeliers, but supermarkets resembling warehouses and goods displayed on pallets and in a refrigerated chamber, at low prices", Fix Price retail stores are arranged according to the standards of the 21st century.

 

There are no economic obstacles to Fix Price's arrival, Dragovan Milicevic, an economist and former state secretary at the Ministry of Trade, told Bloomberg. "The energy sector is under sanctions, but the trade sector is not, so Fix Price can work freely in Serbia. On the other hand, Serbia has not imposed sanctions on Russia, the Serbian market is free for the arrival of Russian traders and cash flows between Serbia and Russia are free," Milicevic explains.


Lidl, Delhaize and Mercator can breathe a sigh of relief... or maybe not

When asked whether the arrival of another large retailer will increase competition in the retail market, Milicevic said: "It's unlikely that anyone is going to force Delhaize and other big systems like Mercator and Lidl to lower prices. These are large chains that have their own business policy that cannot be changed so easily even on an annual basis, and especially not from month to month or week to week, as some may expect."


A paradise for the thrifty or a market with "stocks you can't miss"?

However, the arrival of Fix Price, whose business model is based on low prices and wide availability of products, may be good news for consumers in Serbia, especially for those with lower purchasing power.


Another chain with irresistible discounts, what could go wrong

However, the key question is how Fix Price will manage to position itself in the Serbian market and what its pricing policy will be. According to Milicevic, they are likely to repeat the scenario seen at the arrival of Lidl, when prices were lower at the start, but later adapted to the competition.


"Lower prices are likely to initially try to win over consumers. The question is also what kind of offer they will have. Will they import goods from branded manufacturers or will they focus on lesser-known, cheaper products, of lower quality. In order to seriously compete with large chains such as Delhaize or Mercator, they must offer a quality assortment at prices that will attract consumers, and not just cheap goods of lower quality, as is the case with retail Svetofor and Mere," explains Milicevic and adds that Idea used to have a margin of 12 percent, and after 10 years it has a margin of 37-40 percent. says Milićević.


What is known about the Fix Price

Fix Price has more than 6,500 retail stores in Russia, Kazakhstan, Belarus, UAE, Armenia, Uzbekistan and Mongolia. Information about employment at Fix Price in Serbia appeared on the job posting site HH.ru. The company, among other things, is looking for an HR expert who will form a team to expand the network in the Serbian market. Also, in the ads for the chief accountant and senior lawyer, work in Serbia is mentioned.


There are 2,000 Russian-owned companies in Sri Lanka

According to data from the summer of 2024, more than 2,000 companies founded by Russian legal or natural entities were registered in Serbia. A similar growth trend of Russian investments in Serbia was observed after the outbreak of the conflict between Russia and Ukraine in 2022. In 2021, only 80 Russian companies operated in Serbia.


Bloomberg Adria asked the Ministry of Interior and Foreign Trade whether it is true that the Russian retail chain Fix Price is coming to Serbia and, if so, in which cities and when it will open its retail stores, but they did not answer questions by the time of publication of this text.



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