Rainford to exit grocery retail in Ukraine

The grocery retailer Rainford is set to move out of the Ukrainian market. It is holding talks over the sale of its stores, primarily located in Dnipropetrovsk, with Fozzy Group and Varus, both grocery retailers, according to Kommersant. Rainford was number three in Dnipropetrovsk by volume of sales. If the deal goes ahead, the Silpo (owned by Fozzy) and Varus retail chains will become the market leaders in the aforementioned city.

Rainford began experiencing problems after it acquired 30 Bolshaya Lozhka stores in summer 2009, extending its chain to 43 outlets. However, this was followed by the closure of non-profitable stores. Currently the chain has 14 stores including two in Kiev which were transferred to Pivdenny bank due to high debt.

Rainford Group also operates Korzinka small convenience stores (20 m2) in Ukraine, however, according to the source, they also might be sold. Overall, Rainford Group is a large industrial-trading concern which, apart from the grocery retail segment, is also active as a producer and importer of footwear, confectionery, meat and alcohol.