Ukraine Retail: $500M Investment For BRYSNYTSYA Chain

News Analysis: The Economist Intelligence Unit Limited New York, New York, Monday, Oct 15, 2007

Diversified holding group SCM Holdings has announced that it plans to invest around up to US$200m by 2013 to expand its recently launched retail chain, Brusnytsya, across Ukraine to as many as 500 stores.

SCM entered the retail sector earlier this year with the opening of its first Brusnytsya outlets in the Donetsk region in eastern Ukraine. Currently the company operates nine stores through its subsidiary Ukrainskiy Retail.

SCM explained that it plans to operate 20 stores by end-year, and that by end-2008 its retail network would reach 80 stores across the country. In the first phase, Brusnytsya stores are being built in a smaller format of 300-400 sq metres. Phase two calls for the construction of supermarkets of 800-1,200 sq metres.

SCM is Ukraine's largest holding company and one of the country's largest domestic investors. For the 2006 period, SCM posted consolidated pre-tax profit of US$1bn. Sales reached over US$6.7bn, a nearly 19% rise over the previous year. The group's assets reached over US$11.4bn at end-2006.