Magnit, a major retail chain, may roll out a new discount concept amid growing consumer demand for savings. According to Kommersant, the plan is being explored as a distinct economy-focused format, separate from Magnit’s core store lineup. The idea of a standalone discount network reportedly began in 2022 and could be greenlit in the first quarter of the year, setting the stage for the opening of the first locations once approved.
The reporting notes that Magnit has already been connected with the My Price discount network since 2020, a channel that offers inexpensive goods and private label products. Analysts, however, view My Price as one of several formats within Magnit rather than a purely hard-discount model. If the new concept moves forward, it is expected to gain momentum in regions where there is a viable opportunity to add new stores.
Market observers also see potential for additional discount outlets, noting that major retailers do not yet have a uniform footprint across all regions. In times of economic strain, regional networks may shrink for some players, creating space for larger groups to bolster their regional presence and scale their footprint more effectively.
Meanwhile, the Russian retailer X5 Group, which operates Pyaterochka, Perekrestok, Karusel, and the Chizhik discount store, is advancing its own expansion strategy. Reports indicate X5 Group has taken control of two Eastern Siberian chains, Krasny Yar and Slata, in a strategic move aimed at strengthening its regional portfolio and growth potential in the near term.
As the discount segment garners more attention from both investors and consumers, the market landscape could see shifts that favor large, diversified players with flexible formats. The ongoing development of new discount concepts exemplifies how retailers are adapting to changing buying patterns, cost pressures, and the demand for value across different regions and income levels. The dynamics in Russia and nearby markets illustrate a broader trend toward more varied price-led formats within established retail ecosystems, with regional diversification offering both opportunities and competitive challenges for incumbents and entrants alike.