The share of private labels in Pyaterochka’s turnover has reached 26-27% and will continue to grow

MOSCOW, September 15 - RIA Novosti. The share of private labels in the retail chain’s turnover has reached 26–27% and will continue to grow, said Denis Vechkanov, commercial director of Pyaterochka.

The statement was made at the main plenary discussion of the World Food Moscow exhibition.

“Today, about 26-27% of our turnover comes from our own brands, and this share will continue to increase. We offer manufacturers two options: either to produce their own brand, and we will ensure its distribution throughout the country, or to jointly develop private labels,” Vechkanov noted, his words were quoted in the press service of the retail chain.

According to him, one of the key conditions for the development of such cooperation is long-term guarantees from the retailer.

“Manufacturers are ready to invest, but they need guarantees. We will provide them in volumes for three to five years. This is quite difficult from a forecasting point of view, but it allows partners to plan development and invest in production,” Vechkanov explained.

He noted that further growth of private labels will be facilitated by the emergence of modern automated enterprises in Russia. A high degree of automation will allow manufacturers to increase production volumes and improve production efficiency.

At the same time, the retailer plans to reduce the number of its own brands and focus resources on developing the most promising ones.

“Over the past three years, we have already halved the number of brands in the portfolio and plan to halve it again. Thus, in four years, their number will decrease by approximately four times - to about 15 brands. The time has come when the retailer must fully invest in its own brands so that they acquire independent value for customers,” Vechkanov emphasized.