Fix Price to build large logistics complex near Kazan for 4 billion rubles
The Tatarstan huge warehouse of the Russian retailer will serve 11 regions of the Volga region, Central Russia and Kazakhstan
Russian retailer Fix Price, which is developing a chain of discount stores for household goods, is negotiating the acquisition of a land plot in Pestretsy District of Tatarstan. Best Plast LLC is going to build one of the largest distribution centres in the Volga region, which will serve 11 regions of the Volga region, Central Russia and even Kazakhstan. The planned investment is 4 billion rubles, the trading company told Realnoe Vremya. The choice of Pestretsy is explained by its proximity to M7 federal highway, which has an exit to the high-speed highway to Kazakhstan. Yuri Chikirov, CEO of the ReAgentstvo Agency, estimates the cost of a hundred square metres of land in this area at 600-700,000 rubles, which is slightly lower than at WB and Ozon warehouses.
Discounter moves out of a rented warehouse in Kazan
The largest discounter Fix Price has announced its intention to build a new distribution centre in the suburbs of Kazan. As Realnoe Vremya was told by the company, the future logistics centre should replace the warehouse complex that the retailer rents in Kazan to service the Fix Price chain of stores. The area of the future centre will be 45,000 square meters, and investments in its construction will be 4 billion rubles.
“Currently, we use a warehouse in Kazan with an area of 33,000 square meters, rented until March 2027,” said Oleg Steinagel, Director of the Fix Price Logistics Department. “However, the needs of our network are growing along with the increase in the number of stores. The new distribution centre will offer about a third more space.”
In a conversation with a Realnoe Vremya correspondent, Oleg Steinagel confirmed plans to purchase a plot of land for the construction of a distribution centre (DC). According to him, the company is looking at Pestretsy District of Tatarstan, which has access to the M7 highway, as well as the Zelenodolsk and Laishevo Districts (here there is also an exit to the M12). According to him, the idea of building its own distribution centre is explained by the fact of high rental rates and a shortage of free warehouse space in Tatarstan.
“The construction of its own warehouse centre seems to be the most effective solution for the development of Fix Price's logistics infrastructure,” the incterlocutor noted, but did not specify whom the land plot for the future terminal would be purchased from.
Meanwhile, local authorities are not aware of these plans. The Executive Committee of Pestretsy District told Realnoe Vremya that they heard about this project for the first time and could not comment on its details. The director of the Logistics Department of Fix Price himself noted that he has not yet visited the region, but is planning to do so.
Distribution centre for 11 regions of the country
Best Plast is planning to build one of the largest distribution centres in the Volga region, which will serve 11 regions of the Volga region, the central part of Russia and even Kazakhstan. As reported by the company, the future centre will serve stores in almost all regions of the Volga region (Tatarstan, Udmurtia, Chuvashia, Bashkortostan, Mordovia, Ulyanovsk, Kirov and Nizhny Novgorod regions, Perm Krai).
In addition, the service area will include regions of Central Russia and Kazakhstan. “This will be a BTS project, allowing us to adapt the facility to the needs of the company,” the discounter explained. It is planned that the distribution centre will begin operating in the fall of 2025. Currently, the company manages 13 distribution centres in Russia and Kazakhstan with a total area of over 480,000 sq. m.
Fix Price is one of the largest networks of low fixed prices, has 7,000 stores. “Our network continues to expand its presence and open new outlets both in large cities and in small settlements with a population of 5,000 people. In addition to opening new outlets in this region, at the end of 2023, we launched a new large distribution centre in Yekaterinburg, the area of which was more than 67,000 square meters,” added Vladimir Pogonin, CEO of Fix Price Russia.
Away from WB and Ozon
This year, the retailer changed its jurisdiction, relocating from Cyprus to Kazakhstan. The message specifies that the company registered under the official name “FIX PRICE GROUP PLC”, cancelling the registration in accordance with the legislation of the Republic of Cyprus. Shareholders approved the re-registration in November 2023. Before that, in October last year, Fix Price received a listing of global depositary receipts on the Astana International Exchange.
For comparison: in Kazan, the cost of industrial land has grown to a million rubles. In these conditions, the strategy of the Fix Price discounter is correct, since rental rates have significantly increased this year and further growth to 1,400-1,500 rubles per square is predicted, concluded Yuri Chikirov.