Retail Group not planning to stop operations in Crimea
Kyiv, April 28 (Interfax-Ukraine) – Public joint-stock company Retail Group (Kyiv), the managing company of food retail chains of the eponymous holding, is not planning to stop operation of its two outlets in Crimea after the annexation of the peninsula by Russia, Retail Group Commercial Director Dmytro Kashyrin said in an interview with reporters at a press conference at Interfax-Ukraine on the introduction of a new loyalty program in the Velyka Kishenya supermarket chain held in Kyiv on April 25.
"We're not planning to stop operations [in Crimea]. No business is interested in stopping the operation of a division that brings profits," he told reporters.
Kashyrin said that the further operation of Retail Group's outlets on the territory of Crimea, a convenience supermarket in Yalta and a Velmart hypermarket in Sevastopol, depends on Ukrainian laws regarding Crimea.
"If we're obliged not to work there [in Crimea], this means that Retail Group will not operate there as a Ukrainian company," he said.
Kashyrin said that the annual goods turnover of the two outlets of Retail Group in Crimea amounts to around UAH 1.5 million on average.
Kashyrin also said that today the operation of the company's outlets in Crimea is complicated due to unsettled legislation, and from time to time there are difficulties with the supply of products from the continental part of Ukraine.
Kashyrin earlier said that Retail Group plans to increase the chain's goods turnover in kind by at least 5-7% in 2014 compared to 2013, not taking into account the outlets planned for opening.
Retail Group boosted goods turnover by 4.6% in 2013 compared to 2012, to UAH 6.2 billion, according to an unaudited financial report.
The main shareholder and founder of Retail Group Roman Lunin earlier told reporters that Retail Group plans in 2013 to increase goods turnover by 10-15% compared to 2012, to almost $700 million. He said that net sales of the holding in 2012 came to $605 million (value added tax not included).
Chief Financial Officer Oleh Pyavka said that Retail Group planned in 2013 to open 15-30 trade outlets in Ukraine, investing about UAH 40-80 million in the chain's development.
Retail Group was established in 2005. As of April 25, 2014, the group managed 41 Velyka Kishenya stores in 17 cities in Ukraine, 14 Velmart discount stores in 12 cities of Ukraine, four VK Select premium class stores, a Prosto-Market discount store, eight VK Express convenience stores in Ukraine and Green Hills Market stores in Moldova.