A Russian discount store dubbed the 'Russian Lidl' is closing its UK store in Preston following the invasion of Ukraine. The supermarket chain has also paused its expansion plans for more stores. Svetofor, which operates under the name Mere in Europe, opened its first UK store last August and had plans to open three more in Castleford, West Yorkshire, Caldicot, Wales and Mold, also in Wales.
The retailer is believed to have thanked its supplier for their co-operation, but due to the current "political situation" it has made it difficult for them to continue doing business in the UK, let alone expand. Mere's long-term ambitions were to open around 300 branches within a decade.
Preston staff were given the news that the store would be closing in two weeks, reports Lancashire Live.
The Preston store is located at the Miller Road site where independent grocers Nisa used to be.
Trading as Svetofor in Russia, the brand was established in 2009 and now has around 3,000 stores globally, including in Germany, Spain, Poland, Romania and Lithuania.
The brand prides itself on 'no frills, shelves, or points of convenience'. The prices and product descriptions are printed off on pieces of yellow A4 pieces of paper along with some printed pictures.
In the UK, it aimed to undercut competitors Lidl and Aldi prices by up to 30 per cent with its extreme low-cost operating model, which includes having suppliers deliver directly to stores and providing no customer service aside from staffed checkouts. Introducing this model to the UK proved more difficult than anticipated, causing problems for the company even before Russia’s invasion of Ukraine - some suppliers felt put off by its terms, including payment only for products that are sold.
As a result, Mere had struggled to secure enough stock to make an impact, lacking basic food lines.
However, Shore Capital retail analyst Clive Black said Mere’s Russian ownership would have made it extremely difficult for it to continue trading in the UK now.
A supplier source said he believed Mere had made an error in thinking its barebones hard-discounter model would succeed here.
“I don’t think we’ll ever see Mere back in the UK,” they reportedly said.
LancsLive has attempted to contact Mere for a comment on the situation.
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