The combined asset, formed after the Lenta retailer purchased the Utkonos online grocery delivery service, will become the only player that has in its arsenal all delivery options – from 15-minute urgent to next day delivery. Data Insight CEO Fyodor Virin told Izvestia about this on Thursday, December 16.
It is not known whether the combined company will retain all delivery options, but combining such different formats in one company is more than a difficult task, the analyst said.
The deal itself looks more like a restructuring of assets within the group, which may have a positive effect on growth rates in the future, but it certainly will not have any impact on the market right now, Virin said.
According to AKIT President Artem Sokolov, Lenta’s acquisition of the Utkonos food delivery service is expected, given that the company had previously announced a long-term goal to occupy 10% of the e-grocery market.
“The deal will undoubtedly strengthen Lenta’s position in the development of the online channel. This will be facilitated by synergy with one of the key e-commerce players in the FMSG market (fast-moving goods that are used for personal and family consumption. – Izvestia), with sufficient experience, unique competencies and a large loyal customer base. But at this stage of market development, this step does not lead to monopolization, but unambiguously enhances the already extremely high competition in this segment, “Sokolov told Izvestia.
The share of the category “food” in the total volume of online trade is now 9%, occupying the fourth line in the ranking of the most popular goods on the Internet. This is one of the most dynamically developing market segments, the expert concluded.
Earlier on the same day, Lenta’s press service wrote in its Telegram channel that the company was acquiring Utkonos. The base price of the deal is RUB 20 billion.
Thus, Lenta plans to create “a leading platform in the e-grocery segment, covering all the key needs of buyers and market segments.” The deal will enable Lenta to compete more effectively on the Moscow online market, especially in the above-average and premium price segments.
Lenta General Director Vladimir Sorokin emphasized that the deal is fully consistent with the retailer’s strategic priorities.
Utkonos is an online retailer based in Moscow and a pioneer in the e-grocery segment in Russia. In 2020, its share in the metropolitan e-grocery market was about 10%.
Earlier, in May, it became known that Lenta was buying the Billa supermarket chain. Thanks to the purchase of mature outlets with a high density of sales, the company expects to expand its network in Moscow and the Moscow region faster. The total share of the company in the food retail of the region after that will be about 3%.
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
