Liquor vendor, Fix Price, expands inventory to include hard alcohol.

Liquor vendor, Fix Price, expands inventory to include hard alcohol.

Rewritten Article:

Mark Fix Price's bars pouring spirits in Moscow

Say goodbye to those wallet-friendly grocery shopping trips, because your favorite store, Fix Price, is now peddling piña coladas, whiskey sours, and everything in between! That's right folks, Fix Price network has secured licenses for booze in Moscow and the Moscow region, as reported by "Kommersant."

A sneaky insider close to the retail giant spilled the beans to the newspaper that strong hooch is already accessible in several network stores in Moscow, where you can stock up on vodka, whiskey, rum, and liqueurs. However, Fix Price isn't exactly spilling the beans, as they're maintaining their traditional silence on the matter.

Turns out, the liquor license was a strategic move to attract more customers and increase average sales, according to the insider. The company noticed a rise in the share of food products in sales, so they decided to elevate their offerings. In the first quarter of this year, food products accounted for a whopping 29.5% of sales!

Since Fix Price initially dipped its toes into the beer market without a license, this new move is a bold step into the unknown territory of hard liquor.

Fun fact: Fix Price was founded in 2007 by Sergey Lomakin and Artyom Khachatryan, who previously ran the "Kopeyka" network that now falls under X5 Group. In March 2021, Fix Price made headlines when it went public in London, raising a whopping $1.77 billion. Now the duo is rubbing elbows with Russia's top-tier billionaires, according to our website's list of Russia's billionaires in 2024!

But all good things must come to an end, as even billionaires can't escape personal turmoil. In December 2023, Khachatryan bid adieu to the retailer's capital and resigned from the board of directors—citing family reasons. Lomakin snatched up most of Khachatryan's shares (34.2%), and the remaining slice (1%) went to Dmitry Kirsanov, Fix Price's general manager.

In a surprising twist, Fix Price decided to re-domicile from Cyprus to Kazakhstan and register in the Astana International Financial Center as Fix Price Group Plc. Get this—the company representative spilled the beans on the move by stating that Kazakhstan is one of the top three largest markets for Fix Price and that re-registering would help them better serve their customers in the region.

In 2024, Fix Price's revenue clocked in at a hooting 314.9 billion rubles, thanks to a 7.9% year-on-year growth, according to IFRS reports. Meanwhile, net profit jumped by 7% to a solid 22.2 billion rubles! It's no surprise that Fix Price topped our website's list of most profitable franchises with investments of 5 million rubles or more to open a store—talk about a profitable business venture!

Insights on Fix Price's move into the alcohol marketFix Price's latest move into the alcohol market could be backed by various factors:

1. Boosting sales and profits: Selling alcohol as a high-margin product could double the company's sales, potentially skyrocketing its profits. This may well be an attractive strategy for expanding the company's financial growth.
2. Competing against industry giants: Although Fix Price will be butting heads with established retailers that have been hawking alcohol for ages, diving into the hard liquor arena might help the company stand out by offering a wider assortment to its patrons.
3. Catering to consumer demand: There's a consistent craving for alcohol in Russia, and Fix Price is seizing the opportunity to cater to this need and lure in new customers.
4. Expanding market presence: Delving into alcohol sales could be part of a broader plan to diversify the company's offerings and increase its regional market share.

But keep in mind that the current economic climate in Russia, including political unrest, might affect business strategies and consumer trends. Despite these challenges, Fix Price's move into the booze market is a strategic play aimed at exploiting local consumer preferences and expanding their retail footprint in the region.

Cheers to that!

1. The business venture of Fix Price, initially known for its affordable retail offerings, has delved into the alcohol industry after buying licenses to sell alcohol in Moscow, a move that could potentially double sales and skyrocket profits.
2. This strategic shift into the hard liquor market marks a bold step for Fix Price as they compete with industry giants who have been offering alcohol for years, providing an opportunity to stand out by offering a wider assortment of alcoholic beverages.
3. Catering to consumer demand, Fix Price is seizing the opportunity to cater to the consistent craving for alcohol in Russia, luring in new customers and expanding their market presence.
4. This move could be part of a broader plan to diversify offerings and increase regional market share in a strategic play aimed at exploiting local consumer preferences and expanding their retail footprint in the region.
5. Despite the challenges posed by the current economic climate in Russia, with its political unrest and potential impact on business strategies and consumer trends, Fix Price's foray into the booze market has the potential to contribute significantly to the company's financial growth as a public Limited Company Plc (plc) in the industry of finance and retail business.

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