12 Stores That Left Zhiznmart Network Close in Chelyabinsk
A Taste and People store on Truda Street did not reopen after the New Year holidays.
In Chelyabinsk, stores of the «Taste and People» network, which left the «Zhiznmart» franchise last fall, have ceased operations. Some outlets are being rented out, while others have signs about reconstruction. It was not possible to contact the network«s representatives. However, according to 74.RU, the markets are unlikely to reopen.
The new brand appeared on the Chelyabinsk market only in October of last year.
Closed for Reconstruction?
Stores of the «Taste and People» network in different districts of the city began closing at the end of the year, readers of 74.RU noted.
Residents of the Manhattan residential complex saw this sign before the New Year.
«Things have been completely dismal lately — half-empty shelves, the terminal and toilet aren»t working. Nothing remains of the good spot where you could grab a bite and then go for a walk,« worried a customer of the store at 36 Krasnopolsky Avenue.
In September, the Zhiznmart sign was hidden at 151 Svobody. The store continued under the Taste and People brand.
They were told it was a temporary closure for technical reasons.
The store at one time sold a record amount of coffee.
«We wanted to stop by, but the door is closed and there»s no light. Has the store closed?« inquired Chelyabinsk residents in the chat for the store at 7 40-Letiya Pobedy.
The store in the Zapadny Luch residential complex was the first to change from Zhiznmart to Taste and People.
«Yes, unfortunately, the store has closed,» replied the «Taste and People» chat.
Signs were hidden on 12 Zhiznmart outlets at the end of September.
Customers increasingly asked questions in the Telegram chats of the outlets. Sometimes network representatives answered them, but mostly they remained silent.
The ready-to-eat format was popular in new residential neighborhoods.
«Good evening, are you closed? — a customer of the store at 46 Universitetskaya Embankment was surprised. — It was closed during the day today.»
The premises of a former store in the Leninsky District are already for rent.
A sign appeared on the door of one of the flagship outlets — at 176 Truda Street: «The store is temporarily closed for reconstruction. Will reopen soon.» A similar message «adorned» the entrance of the outlet at 17 Rodionova. The New Year holidays passed — what should be the busiest time for retail — but «the cart» (meaning the closed doors) is still there.
We visited various outlets of the «Taste and People» network — all stores are closed.
No one answers the phone numbers listed in the 2GIS and Yandex Maps services.
«The subscriber is temporarily blocked,» an automatic voice responder reported.
The editorial staff of 74.RU tried to find out the reasons for the closures and the future of the outlets from the network«s senior administrator Vladimir Novykh, who had previously commented on the concept of the »Taste and People« stores. But we couldn»t reach him.
«Outgrew the old format»
Signs for 12 «Zhiznmart» stores in Chelyabinsk disappeared in September. It turned out the outlets would continue operating not as a franchise, but under their own brand.
«We outgrew the old format; the new one will be more modern, convenient, and »tastier.« The highlight of the new format will be a coffee menu with updated signature drinks. New products that weren»t there before will appear,« senior network administrator Vladimir Novykh explained to 74.RU at the time. »We will hold more tastings and even masterclasses. We will control suppliers ourselves and listen more to feedback.«
Meanwhile, the company «Zhiznmart» stated that it had revoked the franchise from 12 stores in Chelyabinsk due to violations of standards and non-payment.
According to Rusprofile, the «Taste and People» network stores operated under the management of several individual entrepreneurs.
In October, 19 stores under the «Taste and People» brand opened — in Chelyabinsk, Yekaterinburg, Revda, Kopeysk, Zlatoust, and Miass. Representatives of the new network based it on a known format — the design of the halls and the assortment of ready-to-eat meals resembled «Zhiznmart.»
The problem is a lack of working capital
Franchising experts called exiting the franchise a typical story but warned of potential risks.
«The new brand must be developed, loyal customers must be gained, and not all of the audience from the previous brand transitions to the new one. Suppliers will have to be changed, or agreements must be reached to launch products under the new brand. But since volumes will be smaller, the purchase price will likely be higher for the partner,» explained Anna Rozhdestvenskaya, head of the franchise catalog Franshiza.ru, earlier.
The problem for the initiators of the «Taste and People» project is a lack of working capital, assessed one of Chelyabinsk«s »Zhiznmart« franchisees, who asked not to be named.
«Their first stores were in good locations and worked successfully. But they wanted to capture the market as quickly as possible and began opening many outlets in questionable locations. Even when they were partners of »Zhiznmart.« As far as I know, they already began having problems with working capital, payment delays, and so on then. And when they changed the sign, the problems only increased,» suggested the Chelyabinsk «Zhiznmart» franchisee. «They tried opening stores in St. Petersburg, but they worked there for very little time.»
According to an entrepreneur developing «Zhiznmart» outlets in Chelyabinsk, the economic downturn is affecting business — the number of visitors and the average check are decreasing. Nevertheless, all stores are operating at a profit, he said. But he would be cautious about opening many outlets at once.
We asked representatives of the «Zhiznmart» management company whether they plan to relaunch brand stores in the vacated locations. After all, these locations were selected jointly with the management company at the time.
«Yes, we continue to open in Chelyabinsk, including in these locations. On January 20, we opened a new large-format store at 88 Svobody,» noted the «Zhiznmart» press service. «Our goal in the city remains unchanged: to strengthen our presence and focus on the main things: high service, full shelves, safety, and product quality.»
Ready-to-eat food is trending
Meanwhile, ready-to-eat food remains the fastest-growing category in the FMCG (fast-moving consumer goods) market. According to research by NielsenIQ, over the past six months, 87% of Russian buyers purchased it. In Moscow and St. Petersburg, the figure is even higher — reaching 90% of those surveyed.
«Interestingly, in families consisting of three or more people, the share of ready-to-eat food buyers also exceeds the average level and is 91%. This clearly reflects a change in consumer scenarios,» emphasized NielsenIQ representatives in their Telegram channel. «Ready-to-eat food is increasingly perceived as a full-fledged element of the diet, which helps not only save time but also diversify meals.»
In December, one of the two stores of the new network «DAVAYTAK,» launched in Magnitogorsk on the site of former «Zhiznmart» outlets in September, closed.
Recall that we reported in February and March 2022 about «Zhiznmart» entering Chelyabinsk. Then we analyzed how the Ural supermarket chain was capturing the city and how popular the cashier-less store format was.
In recent years, an active transformation of the grocery market has been taking place in Chelyabinsk. Previously, Dixy stores closed. The Ariant-branded outlets were sharply reduced. The federal chain VkusVill entered the capital of the Southern Urals, and later it opened its first dark store. Several «hard» discounters operate: «Dobrotsen,» «Svetofor,» «Mayak,» «Nakhodka,» «Chizhik.»
A major player in the delivery of groceries, ready-to-eat food, and household goods — «Yandex.Lavka» — also entered Chelyabinsk. The federal retailer «Lenta» opened an economy-format store, and last summer it bought the company «Moll,» which manages the trading network «Molnnya — Spar» in the Southern Urals. By the end of the year, the outlets transitioned to the brands «Giper Lenta,» «Super Lenta,» and «Monetka».
