Former Zhiznmart stores in Chelyabinsk close suddenly

Stores of the Vkus i Lyudi chain, which left the Zhiznmart franchise last autumn, have ceased operations in Chelyabinsk. Some of the outlets are being rented out, while others have signs announcing reconstruction. It has not been possible to contact the chain«s representatives. But, according to our colleagues at 74.RU, the markets are unlikely to reopen.

Closed for reconstruction?

Readers of 74.RU noticed that Vkus i Lyudi stores in various city districts began closing at the end of the year.

«Lately, things have been really sad—half-empty shelves, the card terminal and toilet don»t work. Nothing remains of the good place where you could grab a bite and continue your walk,« worried a customer of the store at 36 Krasnopolsky Prospekt.

They were told about a temporary closure for technical reasons.

«We wanted to stop by, but the door is closed and there»s no light. Has the store closed?« asked Chelyabinsk residents in the chat of the store at 7 40-Letiya Pobedy Street.

«Yes, unfortunately, the store has closed,» responded the Vkus i Lyudi chat.

Customers increasingly asked questions in the Telegram chats of the outlets. Sometimes representatives of the chain responded, but for the most part, they remained silent.

«Good evening, have you closed? — a customer of the store at 46 Universitetskaya Naberezhnaya was surprised. — It was closed during the day today.»

A notice appeared on the doors of one of the flagship stores at 176 Truda Street: «The store is temporarily closed for reconstruction. Will reopen soon.» The same message «adorned» the entrance of the outlet at 17 Rodionova Street. The New Year holidays passed—what would seem to be the hottest time for trade—but the cart (that is, the closed doors) is still there.

We drove to various Vkus i Lyudi chain outlets—all stores are closed.

No one answers the phones listed in the 2GIS and Yandex Maps services.

«The subscriber is temporarily blocked,» announced the answering machine.

The 74.RU editorial office tried to find out the reasons for the closure of the outlets and their further fate from the chain«s senior administrator Vladimir Novykh, who had previously commented on the concept of the Vkus i Lyudi stores. But it was not possible to contact him.

«Outgrew the old format»

The signs of 12 Zhiznmart stores in Chelyabinsk disappeared in September. It turned out the outlets would continue operating not under the franchise, but under their own brand.

«We have outgrown 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 were not available before will appear,» the chain«s senior administrator Vladimir Novykh explained to 74.RU at the time. »We will conduct tastings and even master classes more often. We will control suppliers ourselves and pay more attention to feedback.«

Meanwhile, the Zhiznmart company stated that it had revoked the franchise from 12 stores in Chelyabinsk due to violations of standards and non-payment.

According to Rusprofile, the Vkus i Lyudi chain stores operated under the management of several individual entrepreneurs.

In October, 19 stores began operating under the Vkus i Lyudi brand—in Chelyabinsk, Yekaterinburg, Revda, Kopeysk, Zlatoust, and Miass (all in the Urals region). Representatives of the new chain took a well-known format as their basis—the interior design and assortment of ready-made meals resembled Zhiznmart.

The problem—a lack of working capital

Franchising experts called the exit from the franchise a typical story but warned of possible risks.

«A new brand needs to be developed, loyal customers acquired, and not all of the audience from the previous brand transitions to the new one. Suppliers will have to be changed or agreements reached to launch products under the new brand. But since the volumes will be smaller, the purchase price will most likely be higher for the partner,» Anna Rozhdestvenskaya, head of the franchise catalog at Franshiza.ru, explained earlier.

The problem for the initiators of the Vkus i Lyudi project is a shortage of working capital, assessed one of Chelyabinsk«s Zhiznmart franchisees, who asked not to be named.

«Their first stores were in good locations and operated successfully. But they wanted to capture the market as quickly as possible and began opening many outlets in unclear locations. Even when they were Zhiznmart partners. As far as I know, they already started having problems with turnover, payment delays, and so on. And when they changed the sign, the problems only increased,» suggested the Chelyabinsk Zhiznmart franchisee. «They tried opening stores in St. Petersburg, but they operated there for a very short time.»

According to an entrepreneur developing Zhiznmart outlets in Chelyabinsk, the business is affected by the economic downturn—the number of visitors and the average check are decreasing. At the same time, he said, all stores are operating profitably. But he would be cautious about opening many retail outlets at once.

We asked representatives of the Zhiznmart management company whether they plan to relaunch the brand«s stores in the vacated locations. After all, these locations were selected jointly with the management company in their 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 Street,» noted Zhiznmart«s press service. »Our task in the city remains unchanged: to strengthen our presence and keep the focus on the main things: high service, full shelves, safety, and product quality.«

Ready-made food—in trend

Meanwhile, ready-made food remains the fastest-growing category in the FMCG market (fast-moving consumer goods). According to research by the Nielsen company, 87% of Russian buyers purchased it in the last six months. In Moscow and St. Petersburg, the figure is even higher—reaching 90% of respondents.

«Interestingly, in families consisting of three or more people, the share of ready-made food buyers also exceeds the average level and is 91%. This clearly reflects a change in consumer patterns,» emphasized representatives of the Nielsen company in their Telegram channel. «Ready-made 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 chain «DAVAYTAK» (Let«s Do This), which was launched in Magnitogorsk (in the Urals) in place of Zhiznmart outlets in September, closed.

Recall that we reported in February and March 2022 about Zhiznmart«s entry into Chelyabinsk. Then we analyzed how the Ural supermarket chain was capturing the city and how in demand the cashier-less store format was.

We wrote that rumors about the sale of Zhiznmart appeared in the information field in September of this year. Later, the company said that there were no active deals for its sale.

Everything known about the Ural store chain we have collected in this article. In it, we told how the company originated and developed.