Fix Price, which has captured 90% of Russia's discount retail market, is about to go public

After Ozon's U.S. listing surged by more than $10 billion last November, going public seems to be back in fashion among Russian startups. Fix Price said in a public statement on January 15 that it would launch an IPO process on the London Stock Exchange and conduct a secondary listing on the Moscow Stock Exchange.

The company is valued at $6 billion and has captured 90% of Russia's discount retail market

Fix Price was founded in 2007 by the founder of the Kopeika discount chain and was acquired by Russia's largest retail group X5 for $1.7 billion in 2010. Since its inception, Fix Price has grown at an astonishing rate. It is reported that Fix Price is valued at $6 billion and calls itself the world's "fastest growing discount retailer."

Fix Price is a pioneer in the discount retail model in Russia. Although the number of products it offers is smaller than that of traditional retailers, the prices are relatively fixed, with the highest product price being 250 rubles (3.4 US dollars) .

Fix Price official website

As a pioneer in discount retail in Russia, Fix Price has now become a leading company in the local discount retail market. A 2019 analysis report by Fix Price shows that the company currently accounts for more than 90% of the Russian discount retail market.

The epidemic boosted the discount retail market, and Fix Price's revenue exceeded 16.6 billion yuan last year

Faced with the global epidemic, many Russians' incomes have fallen and their consumption has been downgraded . Whether it is food or daily necessities, Russian consumers have begun to look for lower-priced alternatives.

Under this circumstance, Fix Price has ushered in its "golden age". As of now, Fix Price has 4,200 stores in Russia, with revenue of $191 billion (about 16.64 billion yuan) and profit of 17.2 billion rubles (about 1.5 billion yuan) last year. The company also has its own online platform, where consumers can shop and place orders on the official website, and Fix Price will arrange door-to-door delivery or consumers can pick up the items at the pickup point.

In addition, the company's CEO Dmitry Kirasnov said that Fix Price's revenue and profits have almost doubled in the past three years and have achieved sales growth for 16 consecutive quarters.

Russia